If you’re a business owner and frequently conduct transactions internationally, you may- at some point- consider opening a business account at an overseas bank. It’s not hard to do, but there are a few more things to consider than when opening a business banking account domestically. Here’s what you need to know:
"What country do you want your account to be in?"
Unless you already know that you need an account in a particular company, give some thought to which country would be most beneficial for your international banking. It’s important to consider things like tax laws as well as social issues like the stability of the political system and the banking system.
"How do the fees compare?"
There’s a very wide range when it comes to how much banks charge for their services, so it’s very important to consider this when choosing an international bank. Fees for international transactions can be high. What will the bank charge for online payments? Wire transfers? ATM fees? Think about the type of transactions you’ll be doing most often, and find out what the banks you’re considering charge for those transactions.
"What services does the bank offer?"
Banking in a foreign country can be tricky if you don’t know what you’re doing. You can make the process run much more smoothly by choosing a bank that offers services to help you navigate any bumps in the road. Many banks have specialists who advise foreign investors on local laws and customs. Having insider information on how people in that country prefer to do business can be invaluable.
"What about the currency?"
Currency exchange is a little like gambling; even the professionals often get it wrong. But you don’t want to set yourself up to lose. Protect your capital by choosing a bank that offers the currency solution – or solutions – that work(s) best for you.
- With a “spot rate” scheme, you get the exchange rate that is in place when the transaction goes through.
- With a “forward” or “fixed rate” hedge, you agree to exchange one currency for another at a specific rate at a specific time. This may be a good option when you’re confident of the future: that you’ll need to pay a bill, that a guaranteed deal is going to go through, etc.
- With a “flexible” hedge, you agree to have the ability to exchange at a particular rate at a particular time, but you’re not bound to follow through. If the exchange rate at the time isn’t in your favor, you don’t have to do anything.
Banks can charge different fees for each of these schemes, so it’s important to weigh the fees against the potential profit or loss to decide which is best for you.
Corporate bank account opening in Singapore with DBS Bank.
International corporate bank account with full e-banking facilities in Singapore with DBS Bank - the leading financial services group in Asia. Business banking solutions for medium and large-size enterprises.
"What about reputation?"
As with many things in life, reputation matters. If financially stable, profitable companies use the bank you’re considering, that’s a good sign. The opposite isn’t necessarily true – the lack of prestigious clients doesn’t necessarily mean the bank is a bad choice – but the presence of prestigious clients can offer you some peace of mind.
Choosing an overseas bank for your business isn’t that different from choosing a domestic bank, but there are a few additional things you need to consider, like international transaction fees and currency exchange. Fortunately, it’s easy to get the information you need to make a good decision; you just need to ask the right questions.
Assistance with corporate bank account opening in Belize with Atlantic International Bank.
Different types of international corporate bank accounts with easy access to funds via secure online banking.