Many companies wish to grow and expand globally; however, this comes with several challenges and obstacles that must be overcome. One of these challenges is related to the ability to do business with other countries, and this requires versatile business accounts that allow the company to carry out its financial operations efficiently and effectively. It is now where Multicurrency IBAN accounts stand out, which can boost the company’s international expansion, allowing it to expand its market and reach new customers.
Optimizing payments and collections
For a company to expand its market, it must optimize its payments and collections process in different countries, especially when using several currencies. With a multicurrency IBAN account, companies can conduct international transactions besides using various currencies (which can be difficult with some traditional bank accounts). It is important to note that multicurrency IBAN accounts can handle up to 30 currency denominations.
Avoid opening accounts abroad
When a company starts to open its market internationally, it has the advantage of making financial transactions with suppliers or customers in other countries. However, it is not practical to open a bank account in each country where you want to make a transaction, and, at the same time, you have to make the corresponding currency exchange to the native currency, especially to reconcile the income and expenses of the company.
Multicurrency IBAN accounts help companies minimize or avoid opening foreign bank accounts to execute their international financial transactions, besides allowing companies to access their transactions in one place, facilitating accounting reconciliation and effective resource management.
Fast transactions
Time is precious, especially when making international transactions, as this can impact the success of a negotiation that can generate dividends for the company or business. Companies with a multicurrency IBAN account can carry out their transactions quickly, which is helpful for the company’s liquidity and operational efficiency since it can quickly access funds, allowing it to cover unexpected expenses, pay suppliers on time, or manage its cash flow more effectively.
Reducing the operational cost of transactions
When we carry out an international transaction through traditional means, we generally lose a significant percentage of the amount to commissions and currency conversions.
At this point, having a multicurrency IBAN account allows the company to reduce its operating costs in its transactions since this type of account allows currency conversions at competitive rates and in a transparent manner, in addition to having (in most cases) lower commissions compared to the traditional bank since transactions can generally go directly to the recipient bank without the need for intermediaries, which tend to reduce the intermediation costs that some financial institutions charge for processing international charges.
Facilitates international trade
Multicurrency IBAN accounts offer many advantages for international trade; for example, the company can sell its products/services in the local currency of the country they are targeting, plus they can maintain balances in different foreign currencies, which simplifies transactions/operations with customers and suppliers in several parts of the world, thus eliminating the need to constantly convert currencies, which also reduces the costs associated with currency exchange.
International Accounting
Multi-life IBAN accounts allow companies to have more efficient and simplified accounting for their international operations, thus facilitating auditing processes, accountability, financial reporting, and compliance with local regulations or standards.
Better user experience for foreign customers
When the company offers the option of making payments in local currency to its foreign customers, it can significantly improve the experience of these customers and increase their level of satisfaction, directly influencing customer retention and brand loyalty.
What do you think about this topic? Do you want to know more about the IBAN multicurrency account service?
If you are interested in Pilsenga’s products or services (including IBAN Multicurrency accounts for companies), you can visit our website and register on our platform by visiting the following link.
