Are you a UK business owner trading overseas and in multiple currencies? Do you need a multi-currency account?
With uncertainty in the economic climate around issues such as Brexit, demand for multi-currency accounts has increased as online businesses are looking to protect themselves from exchange rate fluctuations.
A multi-currency account allows users to keep their money in one or more currencies (other than pounds) in the same account. If you travel a lot or if you are an online business with commercial interests in foreign markets, a multi-currency account might be right for you. If you work with suppliers overseas you might already be dealing with two different currencies and ultimately, losing out to fluctuating exchange rates.
If you are uncertain whether you need an account, we're here to help you decide if you need one.
What is a Multi-Currency Account?
A multi-currency account allows you to keep money in one or more currencies in your account. An active multi-currency account can have euros, pounds and dollars, all at the same time. A few examples of multi-currency accounts available to UK customers are:
TransferWise - a multi-currency app for travellers, expats and freelancers.
Fineco Bank- one multi-currency account for all your banking and trading needs.
HSBC- an easy-to-manage currency holding account, with no monthly account fee.
What Are The Benefits of a Multi-Currency Account?
Not Converting Funds Every Time
This is a huge benefit that impacts customers' time and money. A multi-currency account will already have the correct currency waiting in your account to pay any outstanding debts or payments you might be dealing with each month.
Not Dealing With International Transfer Times and Fees
Due to a multi-currency account already having the correct currency, you won’t have to wait for any international transfers or fees. This is a much more efficient way of sending money across to your suppliers in another country, enabling efficiency and more importantly, saving you more time.
This will also benefit you if you have to pay for services, business expenses or employees overseas, as you will not have to deal with ever-changing exchange rates.
You Can Use an Account to Buy Online
Shopping online and buying goods in a number of currencies using the same account has never been easier. Whether the retailer is trading in dollars, pounds, euros or otherwise, you will be able to purchase goods online easily using your multi-currency account.
Are You Aiming to Expand Globally?
If you are aiming to grow into foreign markets, you are going to need to deal with the local currencies of your target markets. It is estimated that 93% of shoppers prefer to pay in their own currency.
You need to consider how much money you are receiving before you set up a multi-currency account. If you are receiving a high volume of sales each month, you may feel as if you are losing a significant portion of your earnings unnecessarily, as you're constantly converting international earnings, or being charged fees by certain banks. Make it easier for yourself and your business by having the ability to pay - or accept payment - in a currency that suits you at any time.
Are Your Team Members in Other Countries?
If you regularly pay staff in different countries, this could be another reason to open a multi-currency account. It makes sense particularly if you are accepting funds and paying salaries in the local currency.
Furthermore, if you work with freelancers in a different country and you have agreed to pay them in GBP, you need to consider the exchange rate and fees to send money internationally.
Best International Shipping Couriers to Use
If your business is constantly sending overseas, you will need the most reliable couriers to ship your items safely and on time, at the most affordable prices in the industry.
We have come up with a few of the best international courier services to help you out:
Postage to Germany - UPS Access Point Euro - £9.79 exc VAT
Postage to USA- Pitney Bowes International Drop Off- £10.29 exc VAT
Postage to Australia- DPD Drop Off Express- £16.95 exc VAT
Postage to Spain- TNT Express- £18.10 exc VAT
Postage to China - FX World Express- £22.85
Postage to France - UPS Access Point Euro- £12.49 exc VAT
*These prices are set as of 21/10/2019 and may be subject to change.
Using Smart Send
Are you looking to save time on importing your item’s details and delivery addresses from your e-commerce channels? Smart Send will help you stay in control of all of your shipping.
If your online e-commerce business handles multiple orders at a time, Smart Send can help you manage all of your orders in one place. Smart Send puts you in control of your shipping across multiple platforms.
Is a Multi-Currency Account Right for You?
By now you should have a better idea of what multi-currency accounts are and why your business might benefit from having one. A multi-currency account will give you the freedom to send overseas without the hassle of waiting for international transfers and give you the ability to handle fees without worrying about if you possess the correct amount of money in that specific currency. So, what’s stopping you? Embrace business without borders today.
Additionally, if your e-commerce business is looking to send parcels internationally, Parcel2Go provide the cheapest internationally parcel delivery on the market. Be savvy and save money on parcel delivery today by getting a free quick quote!