Why New Business Owners Choose Digital Business Accounts
Many of today’s entrepreneurs know that speed is the key to start-up success. And while this notion has a lot to do with being the first to market, it also applies to novice business owners having the necessary resources to take their companies off the ground — starting with a corporate bank account.
However, most entrepreneurs who are trying to take the plunge are soon met with bureaucratic red tape. Strict guidelines and tough international policies make the process of opening a business account with most incumbent banks time-consuming and laborious — factors that could make-or-break new start-ups that need to move quickly in order to succeed.
The Challenge of Business Bank Accounts
Thanks to regulated compliance requirements, it’s become harder for small businesses to grind through basic operations like opening a corporate bank account. Without solid paperwork, banks could battle to differentiate between legitimate companies and organisations created as a front for money laundering.
Understandably, banks also want a certain degree of proof that having a new business owner as a customer will be financially beneficial to them — costs incurred by banks for maintaining accounts increase every year. That’s why many organisations who have been operating for less than six months claim to be rejected by banks when trying to open a business account due to a lack of profitability.
Additionally, if company owners want to capitalise on global scale financial services, they face the hurdle of being unable to open a bank account online. Most banks require the physical presence of business owners and majority shareholders so that they can perform due diligence checks on them and their companies. For foreigners trying to transcend geographical boundaries and tap into global markets, these barriers can become cumbersome.
And, even when entrepreneurs do manage to successfully scale these hurdles, they may face waiting anywhere from a month to half a year to access their corporate bank account as the opening process can be unpredictably long. Furthermore, corporate bank accounts usually come with hefty fees, especially when it comes to cross-border remittances, including exorbitant exchange rates and transfer fees. Fortunately, however, there is a silver lining.
While most traditional banks are working hard to improve their business bank account opening processes, emerging financial technology has overtaken them, offering an ideal solution for entrepreneurs in the form of digital business accounts.
The Advantages of Digital Accounts
Start-ups are agile, so it only makes sense that the way they process money is, too. By embracing digital accounts, organisations across the globe are revolutionising the way they conduct business.
Managed by regulated Financial Institutions (FIs), funds are typically held in segregated accounts with secure partner banks. This means that digital business accounts are cheaper, faster, and easy to open and manage remotely even if you’re not a resident in the country of the account. They also allow for money to move more freely and don’t require in-person identity checks or excessive deposits.
Digital business accounts enable organisations to send and receive local and international payments while reducing their banking fees. Quick to set up, they can streamline companies accepting payments through major online payment gateways like Paypal, Amazon, Shopify and Stripe — meaning they can cost-effectively move into the eCommerce arena, should it suit their business model.
A Business Account Without Borders
Opening a single digital business account with an FI like Currenxie would be akin to opening accounts around the world simultaneously. Instead of relying on a bank system that sees money being held in only one currency, the Currenxie Global Account™ has helped thousands of businesses go global with borderless payments and fast financing.
Here are a few more of its benefits:
Scale your business globally and give your money permission to travel with the Currenxie Global Account. Click here to apply today
Originally published at https://www.currenxie.com.
