Whether you operate a small domestic business or a large corporation, you might have given some thought to corporate international banking in the past. Many professionals, unfortunately, are under the impression that only incredibly large businesses who operate around the globe can truly benefit from offshore corporate banking. In reality, a business of any size, just like an individual with any net worth, can take advantage of international banking benefits.
Find out some of the key ways that corporate international banking can improve your business and help it to grow.
Access to More Affordable Corporate Lines of Credit
After 2008, getting an open line of corporate credit, overdraft facilities or a corporate loan has become increasingly difficult. However, many companies need that financing in order to stay afloat or to expand. One of the biggest benefits of corporate international banking is having access to loans and lines of credit.
These financing options tend to come with more favorable terms than domestic lending, making them ideal for corporations and businesses who want to minimize the costs involved with repayment.
A Range of Currency Types to do Business Around the World
Many companies find themselves limited to buyers, sellers and suppliers that accept a specific type of currency, but doing so could be reducing your potential and your profit margins. Corporate international banking is one way to hold assets in a number of different currency types, which means that you can truly do business on a global scale.
If you need to pay a manufacturer in China or a logistics company in Europe, you won’t need to pay for hefty conversion fees in order to allocate funds in the right currency type.
The Potential to Legally Reduce Your Company’s Tax Burden
One of the main reasons that corporations of all sizes opt for international banking is because storing assets offshore, or actually headquartering offshore, can greatly reduce the company’s tax burden. The key is to bank from a jurisdiction where taxation laws are favorable to foreign businesses.
In Belize, for instance, where you’ll find Caye International Bank, the laws are designed to encourage international business and are very beneficial, from a tax perspective, to international companies.
Cut Banking Costs and Related Fees
Banking fees, account maintenance fees, loan origination fees and repayment fees are a common complaint among businesses concerned with their bottom line. Although financial fees may be a necessity in order to operate as a corporate entity, there are plenty of ways to reduce what you pay each month.
By choosing to bank internationally in a financial institution with a lower overall costs of operations, such as one in Belize, the fees associated with that bank will naturally be more affordable to customers and corporations.
Diversify Company Assets and Provide Greater Financial Security
One of the keys to a successful company is knowing how best to diversify. Focusing too much on exclusively one thing, or keeping all of your assets in one place, is a risky move that savvy business professionals know to avoid.
Corporate international banking keeps your assets from all remaining in domestic accounts and can therefore mitigate some risk.
Whether you want to provide stability to your corporation or help it to expand, corporate international banking has the potential to help.