Traditionally, entrepreneurs must open a foreign currency account for each currency they operate with. But recently, multi currency business accounts are getting more and more traction. 

Let’s find out what you need to know about this type of financial service and how to open one for your business.

Understanding Multi-Currency Business Accounts in Detail

A multi currency business account allows users to hold and exchange multiple currencies through one account. 

Hence, we can use it to handle foreign currencies as well. However, business clients can only access this kind of account. 

Banks and global fintech companies offer such services to businesses.

First, you can treat a multi currency business account as a current one.

Like a current account, you can withdraw and deposit money in the account at will. But there is a more significant advantage with multi currency business accounts. 

You don’t need several local bank accounts to hold local currencies. Instead, a single multi currency business account can handle the exchange of more than one type of currency. 

But there is a catch. The currencies supported may differ across banks. At the same time, the charges for dealing in multiple currencies may also vary. 

But I find most banks supporting  multi currency business accounts in the US, allow transactions in these significant currencies:

1. USD
2. Euro
3. GBP
4. Yen
5. Hong Kong Dollar
6. Singapore Dollar
7. Canadian Dollar
8. AUD
9. New Zealand Dollar

Again, Fintechs like Paytron allow several other currencies, too—however, most trade niches in the US mainly deal with these nine currencies. 

How is a Multi Currency Account Different from a Regular Account?

A multi currency account is a business account that allows an entrepreneur to carry out financial transactions in different currencies within the same account. This means you can receive, deposit, and spend money in pounds, dollars, euros, zloty, etc. Moreover, the currencies can also be easily converted within the account if needed.

Otherwise, a multi currency account is the same as a regular account. As a multi currency account holder, you can:

• Receive, save, and invest money;
• Make transfers and payments;
• And many more financial services.

What are the Benefits of Multi Currency Accounts?

The benefits of using this type of account are relevant to many people, but business owners will especially appreciate them.

1. Convenience. 

There is no need to keep track of your accounts when you can have one account for transactions in various currencies. It is much easier to keep track of your receipts and expenses, receive transfers from other countries, travel, or buy things on foreign sites.

2. No unnecessary conversions. 

Money is credited to the multi currency account using the sent currency. Thanks to this, you will not have to spend money on commissions for additional conversions.

3. Reduce the cost of bank services. 

Banks usually charge a fee for maintaining accounts. As we all know, the more accounts there are, the more expenses there are. One multi currency account can replace all the others and save you and your business more money.

4. Payment flexibility. 

Money is converted into the account quickly and hassle-free, allowing you to pay for goods and services in local currency. With a multi currency business account, your end-of-month accounting becomes much more accessible. 

5. Quick reconciliation with easy accounting: 

Reconciliation is a breeze, with multi currency business accounts. With this account, you may issue an invoice in one currency and receive payment in another. Moreover, there will be no discrepancies in the exchange rate. The payment will happen based on the real-time rate of both currencies. 

6. Foreign exchange charges cut down: 

The forex charges can be a big downside for your business. But not with a multi currency business account. Traditionally, your bank charges a lot whenever you receive payment in a foreign currency. When the same account can hold multiple currencies, paying an additional forex charge is out of the question. 

7. Improved supplier relations: 

A multi currency business account helps a business in many ways. It helps to keep suppliers satisfied as well. Suppliers will want to trade with you more when they get hassle-free payments. The same applies to your clients, too. 

8. Lowered risks: 

You bear the risk of currency fluctuation when dealing in multiple foreign currencies. If your currency value falls, your COGs will spike as well. However, the problem is gone forever when you have a multi-currency business account. You may keep a foreign currency stash in your multi currency business account. When the time comes, pay your client accordingly. 

9. Faster global growth: 

A multi-currency business account gives businesses a lot of financial leverage. With such benefits, their path to global expansion becomes smoother. For example, a company can quickly explore new international markets with a multi currency business account. It helps them to comply with local fiscal norms too quickly. 

10. A single account number: 

Your account parameters do not change at all. You have a single account number for all of your transactions. Whenever transacting, you will use the same. Similarly, your other credentials also remain the same. 

How to Open a Multi Currency Account With Omega?

Opening a multi currency account through a traditional bank can be long and complicated. Therefore, it is worth paying attention to specialized platforms that offer such services. 

Omega is a financial platform offering services to simplify creating, managing, and developing a business online. With Omega, you can:

• Open a multi-currency business account with IBAN remotely
• Transfer funds and accept payments
• Convert currencies
• Use the services of a personal manager
• And many other valuable functions.

This can be done quickly, inexpensively, and without unnecessary bureaucratic delays. Please visit the official website for more information on this and other Omega products.

The Bottom Line 

You can optimize foreign transactions if you have a multi currency business account. Your payments can be faster, safer, and hassle-free. You may make global scale payments across all or most of the continents. 

Foremostly, it will save your forex charges payable and other transaction fees. It will also declutter your fiscal obligations across territories as an MNC. 

The only disadvantage of the account is that multiple banks charge variable transaction costs. At the same time, there is a higher MAB requirement. Barring these, your multi currency business account is a sure winner.

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