Every company, no matter its size or the industry to which it belongs, requires bank accounts to manage cash flow and pay bills. Many businesses opt to move their headquarters to a foreign country in order to take advantage of friendlier economic climates, but many more simply want to open corporate international bank accounts for their assets. Corporate international banking is becoming more popular than ever, so find out what the benefits might be to opening offshore bank accounts for your own company.
Businesses Can Access and Utilize Multiple Currencies at Once
Businesses that operate on a large scale often deal in more than one currency. Your business, for example, might buy materials from suppliers in one country, pay an international shipping company, manufacture the goods and pay wages in a third location and then accept payment in a variety of international currencies thanks to online shopping.
Rather than constantly converting money into a single currency, corporate international bank accounts can allow you to maintain balances in multiple currencies. Not only does this reduce the conversion fees you need to pay, it can add diversity to your holdings in the event that a single currency devalues for any reason.
You Can Access Corporate Offshore Lines of Credit
Another definite advantage of banking internationally is having access to corporate lines of credit from offshore banks. Securing business lines of credit can be tricky in places like the United States, particularly if you are a small business or the proprietor doesn’t have exceptional credit.
Corporate offshore loans are often easier to arrange, and they may even include more favorable lending terms for businesses who are doing everything possible to keep costs low.
Banking Fees for the Business are Often Lower Internationally
The price of having a corporate business account of any kind is often a monthly or annual fee. This might apply to a corporate credit card, a savings account or a business checking account. In international countries with lower costs of living and overhead, these banking fees can be smaller, helping businesses to increase their profit margins slightly.
Businesses Can Enjoy Peace of Mind Thanks to Higher Reserve Requirements
Corporations have to inherently trust their banks, domestic or otherwise, to protect and preserve their assets well. One of the ways to feel more secure is to open an offshore corporate account in a jurisdiction where reserve requirements are higher than in the United States. In Belize, for example, all banks are required to have three times as much in reserve than banks in the United States, and some financial institutions go even beyond that minimum requirement.
Corporations May Qualify for Lower Tax Rates
Finally, it is worth noting that many corporations handle their banking internationally in order to pay fewer taxes. Taxation rates can vary greatly from one country to the next, and earning profits overseas might legally reduce your business’ tax liability.
With so many reasons to choose corporate international banking, it is clear to see a number of businesses are opting to handle their finances offshore.