Over the past few years, the retail industry has reached a new height with the advancement of the e-commerce business. Due to the advent of the internet, digitalization, and the touch of modern technology, consumers are laying towards online shopping. In 2020, a forecast of Statista estimated that over two billion people are doing online shopping regularly. On the other hand, the number of retail sales has surpassed 4.2 trillion worldwide.
In this storm of the online retail revolution, did you ever think about the payment method? If you are doing businesses in different countries and handling many global buyers, you must have an account that ensures your business payment method is less complicated.
Traditional Business Account – Redefined
Perhaps, you may have an account through which you deal with all the business-related issues. Usually, a business account keeps the owner’s business transaction separate from personal finance. The account tracks and manages the cash flow and expenses of the owners. But it does not help you with organizing multiple currencies, and it’s almost impossible to open an individual business account in every different country you run your business. In this complex situation, it is the multi-currency business account, such as the one offered by finecobank.co.uk that will come to your rescue.
A multi-currency account is an account where you can hold different types of currencies and can deposit and withdraw the money while needed. It is an innovative system where the dollar, pound, euro, and other currencies can stay together. Considering all the criteria, let’s look at the reasons why an online entrepreneur must have a multi-currency account.
1. Reducing costs of financial transactions
If you hold multiple accounts in different countries, you must pay an extra charge every time you trade. In addition, to operate the individual business accounts, you may need to pay monthly fees; there may be some hidden fees. Sounds complex?
With a multi-currency account, you can get rid of all kinds of complexity. With all its features, you can hold a single account to trade with suppliers and customers worldwide. The charges won’t even come close to the traditional methods.
2. Ease at managing forex volatility
If you are a global entrepreneur, then the foreign exchange fees are another costly thing you need to keep in mind. For instance, suppose you operate an account that can only receive the foreign currency when it is convertible in your native currency. Then, you may lose some money if the exchange rate does not favor you during the time of withdrawal.
With a multi-currency account, you do not have to face any financial loss of this kind. You can receive and hold the foreign currencies until the exchange rate reaches your favor. It will also save you from those currency conversion platforms that often charge an exchange rate fee higher than the actual market rate.
3. Effective relationship with partners
Having a multi-currency account also helps you to manage the payment transaction with suppliers and vendors. If you have sufficient funds in your account, then you can buy some other currencies at a reasonable rate and store them for your convenience. Later you can use it to pay the international suppliers and vendors. That way, you can improve the cash flow of both you and your suppliers as paying in other currencies can delay the fund receipt of the vendor, which can hamper their business.
Whether it is for the owner or the vendors, the multi-currency works both ways effectively. There will be nothing stopping you from building strong relationships with all parties.
4. Efficient global operation
A multi-currency business account enables one to manage any number of global currencies. It becomes straightforward for entrepreneurs to expand their business globally. You can hold multiple branches of your business in different countries. In this case, you can quickly pay the employee in their native currency. Today the number of multinational companies has expanded globally, and multi-currency accounts are one of the reasons behind this surface. Also, a newborn venture can easily create its position globally, thanks to the currency transaction.
5. Convenient, One-stop solution
Holding different accounts in different countries is not a pleasure for anybody. Every time you run your business operation in a foreign country, will you carry a suitcase full of documents with you? Is it possible? With multi-currency accounts, you can pay all kinds of payments such as education fees, shopping expenses, hospital bills, and purchase unlimited goods over the internet without requiring any paper documents. So, the next time you will travel, you will travel relaxed.
6. Simplified accounting process
When you run a business in a different country, you must be careful about managing the administration operation. The success and failure of the company indeed depend on how sorted its financial transaction. With multi-currency accounts, the administration duties become simple as everything is managed from one place. Also, making monthly accounting less demanding reduces the headache of matching the invoice and receipts of different currencies.
In multi-currency accounts, everything is visible, and you can keep track of every transaction, which simplifies the housekeeping. Besides, it saves you from juggling between different banks through multiple jurisdictions.
7. Better customer experience
The most important norm of business is to ensure the best customer experience. Customer satisfaction is connected with better payment methods too. When your customers get a smooth payment option, it increases the chance for you of getting repeated orders. There is a high chance of losing sales money if your customers pay in different currencies. Through multiple currency systems, the customer can pay with any banknotes without adding to the transaction processing costs of your business.
Overall, in this era of modern innovation, where everything is handled smartly, multi-currency accounts are a must-have for every entrepreneur. Furthermore, considering the global nature of today’s economy, opening a multi-currency business account is the first step to building an effective business strategy for your venture. As it will also provide you with an easy, speedy, inexpensive, and stress-free banking experience, it’s a no-brainer.