No borders exist on the internet. It is truly a medium that interconnects the entire world beyond geographical boundaries. Remarkably, businesses leverage this fantastic feature by inventing new technologies to contribute to the company’s growth. One such technology that has been a popular topic lately is multi-currency accounts.
What are multi-currency accounts?
Like bank accounts, multi-currency accounts are accounts tailored for international businesses that trade in different currencies. Multi-currency accounts let an account owner store money in foreign currencies all in one account. Integrating a multi-currency account into your business’ financial management system can have numerous benefits:
1. It truly takes your business global:
Getting a multi-currency account, such as the posb multi currency account, is the first step to breaking down the barriers stopping you from expanding your business beyond your home country. A multi-currency account will provide you with a streamlined process of collecting international payments.
Customers will be able to make payments more swiftly as customers won’t have to convert between currencies before purchasing any product from your company. Whether your business is operational online or offline, having a multi-currency account will attract more customers to your store because of the convenience and flexibility in payment given to the customers. You can expand your online presence into numerous countries very quickly and easily.
2. It saves a lot of money and brings profit:
Firstly, as outlined above, it will bring more customers to your business. That will result in a higher probability of products being sold to your customers, which would translate to higher profits. Secondly, you’ll save yourself from processing notorious foreign exchange taxes behind every international payment. Multi-currency accounts let you store money in different currencies for as long as possible. So, you can change between currencies in bulk rather than mandatorily converting between currencies after every transaction. It can help you save more through fewer forex taxes. Additionally, converting between currencies when favorable exchange rates can help a business generate more profit.
3. You can build connections with international traders:
In addition to dealing with international customers, as a global business, you would require to trade with traders based in different countries. Processing payments for international traders can be time-consuming and tiresome if carried out with a regular bank account. That’s when a multi-currency account comes to your rescue.
Since money is stored in different currencies, account owners can make payments directly from foreign currencies. It will result in diverse options being available for the supply of raw materials required for your business. Consequently, your products will have better quality and be produced cost-effectively. Better quality products will improve your brand’s image in customers’ eyes. You could attract more buyers through organic marketing done by your pre-existing customers.
4. It provides foreign investment opportunities:
Investments are a great strategy to minimize losses. Investing in various asset classes from different countries will diversify risks on investments and drive higher returns. Multi-currency accounts make it much simpler to invest in foreign assets. Multi-currency accounts are genuinely a golden step toward a financial revolution for businesses. They break economic barriers and substantially help bring profits to a company.