In today's e-commerce age, the ability to receive payments is crucial for businesses and freelancers alike. Stripe and PayPal stand out as two of the most popular platforms for handling online transactions, but to harness their full potential, having a reliable bank account is of great importance.   This guide will walk you through the entire process of opening a bank account tailored for receiving payments from Stripe and PayPal, ensuring you're set up for success.   Understanding Stripe and PayPal   Stripe and PayPal are powerhouse payment processors that facilitate online transactions for millions worldwide. Stripe appeals to developers and businesses with its customizable payment infrastructure, while PayPal is known for its wide acceptance and user-friendly interface.   Each platform offers unique features like fraud protection, straightforward checkout processes, and global payment acceptance, but they also come with their own set of fees and operational nuances. Understanding these differences is key to choosing the right service for your needs.   If you are looking to expand your payment gateway partnerships, drop us a line and we will share some great and cheap options for payment processing.     Preparing to Open a Bank Account   Before rushing to open a new bank account, consider the requirements. You'll need to decide whether a business or personal account suits your operations. Typically, businesses should opt for a business account due to its specific benefits like higher transaction limits and additional legal protections. Gather necessary documents beforehand, including identification (KYC), proof of address (POA), business documents, business plan or explanation of flow of funds.   Depending on a country your business is register and based, you might need to provide more documents. This is especially true if you have a company and your residency elsewhere (sometimes called non-resident bank account).     Choosing The Right Bank   Selecting a bank is a pivotal decision that affects your financial operations. Look for a bank that offers low fees, robust online banking services, and excellent customer support.   Compatibility with Stripe and PayPal is non-negotiable, so ensure the bank is not only capable to onboard your business as a client but also accept multi-currency payments (settlements) from Stripe and PayPal.   Moreover, if you are selling in several different currencies, you’d like to be settled in original currency instead of Stripe and PayPal converting them to your base currency for a high fee.   Many traditional and digital banks are able to go down in FX fees, therefore you might end up saving a bunch.   If you would like to get an up to date list of digital banks that are able to collect payments (settlements) from Stripe and PayPal, and have are cost efficient, fill out contact form and we will send it to you by email.     Step by Step Guide to Opening a Bank Account   Opening a bank account online involves several steps, starting with completing an application, which might require to upload an initial stack of company documents, identify the owners and directors, do selfies and so on.   Below is a simplified list of the most commonly required documents:   - Company incorporation documents - An organization chart showing ownership structure - Identification for all ultimate beneficial owners (UBOs) - Proof of trading address, such as a recent bank statement or utility bill - Brief description of the business's activities - VAT registration, if applicable    Upon submission of the account opening application, the bank will conduct a due diligence checks. Once approved, you'll deposit an initial amount to activate the account. The entire process can vary from bank to bank but expect it to take a from several days to a week.   Linking Your Bank Account with Stripe and PayPal   With your bank account open, the next step is linking it to your Stripe and PayPal accounts. This process typically involves entering your bank account details on each platform and verifying small test transactions. Ensure all information is accurate to avoid delays. Once verified, you can start receiving payments directly to your bank account.     Managing Your Accounts   Effective management of your bank and payment processing accounts is vital. Regularly monitor transactions and be on the lookout for any discrepancies or unauthorized charges. Both Stripe and PayPal offer tools for reviewing transactions and managing disputes, which can be invaluable for maintaining your account's health.   When it comes to managing your bank account, make sure you have contact details of your personal relationship manager. Sometimes it is much quicker to get assistance from RM rather than calling directly to support line.   Moreover, we highly recommend to enable email notifications, so that you are always on top of your settlements from Stripe and PayPal.     Great Addition to Stripe and PayPal: Crypto Gateway   As digital currencies gain traction, crypto payment gateways emerge as a compelling alternative to traditional processors like Stripe and PayPal. These gateways allow customers to pay with cryptocurrencies, offering lower fees, enhanced privacy, and access to a global customer base without currency conversion hassles.   Incorporating a crypto payment option can diversify your payment ecosystem and tap into the growing market of crypto users. If you would like to explore such option, send us an email and we will put you in touch with modern crypto payment gateways and banking providers.     Conclusion   Opening a bank account for receiving payments from Stripe and PayPal is a strategic move that can enhance your business's operational efficiency. By following the steps outlined in this guide, you'll be well-equipped to manage your finances effectively.

If you are looking to open a bank account for Special Purpose Vehicle (SPV) then keep reading on, as we are going to give a step by step guide. A Special Purpose Vehicle (SPV), also known as a Special Purpose Entity (SPE), is a legal entity created for a specific, often singular, and well-defined purpose. SPVs are typically established to isolate and protect assets, risks, or financial obligations from the parent company, thus providing a degree of financial and legal separation. Why Special Purpose Vehicles (SPVs) Are Popular? SPVs serve various purposes in business and finance, helping entities to perform transactions, separate cash flows, or risk associated to new or existing ventures. Below we discuss the most common reasons why SPVs are so popular: Risk isolation : They are used to isolate and manage specific risks associated with a project or financial transaction. By segregating these risks, the SPV shields the parent company from the direct impact of any potential failure or default. Moreover, SPVs are easier to close down, once the project or investment transaction is completed. Securitisation : SPVs are frequently used in securitization transactions. They purchase and hold financial assets (such as loans, mortgages, or receivables) and then issue securities backed by these assets to investors, such as private bonds. This process helps in diversifying risk or separating certain assets from the parent company’s balance sheet. In addition, SPV can be used to implement a certain financial transaction, where several investors are taking part in the investment process and SPV becomes a tool to enable a certain structure that could not be achieved on a parent company level, due to balance sheet complexities. Real estate : SPVs are commonly used in real estate to separate investment risks in different properties or projects. They can help in obtaining financing, managing risk, and ensuring that the financial performance of one property doesn't affect the others within the portfolio. Project finance : For large projects like infrastructure development or construction, SPVs are often used to manage the finances, risks, and ownership structures associated with the project. This helps in attracting investors and managing the project's finances independently. Tax : Some companies use SPVs for tax planning or to take advantage of favorable tax treatments available in specific jurisdictions. Often, jurisdictions such as Gibraltar, BVI, Cayman Islands, Panama, become home for SPVs. What About Regulations Of SPVs? The regulations governing Special Purpose Vehicles (SPVs) can vary significantly by country and region. These entities often fall under the purview of financial, corporate, and securities laws that are in place to govern their formation, activities, and reporting requirements. Regulations often stipulate the allowable activities and purposes for which SPVs can be established. They typically require that the SPV's purpose be specific and well-defined, such as securitization, project financing, or risk isolation. Later on, well done structure and availability of information will help in due diligence process with banking institutions, especially for account opening. Moreover, regulatory bodies such as the Securities and Exchange Commission ( SEC ) in the United States or the Financial Conduct Authority ( FCA ) in the UK might oversee SPVs to ensure compliance with the applicable laws and regulations, especially of SPVs are going to serve investors, end clients, that might be vulnerable to financial risks associated to the SPVs activities. Opening Bank Account For SPV. Step By Step Guide. Opening a bank account for a Special Purpose Vehicle (SPV) involves several steps that can vary based on the country, bank, and specific requirements. If you are looking for an up to date list of banks that are SPV friendly, reach out to us and we will send it to you via email. However, here's a general step-by-step guide that may help in the process: Determine bank account requirements : depending on the specific underlying purpose of your SPV, you should clearly define the requirements for the bank account. Is it going to collect incoming funds from investors and then will be allocated to purchase assets or property, or the SPV will collect dividends and reinvest them, and so on. Banks want to know the requirements of the account and how account will be used once opened. Prepare necessary documentation: collect all required documents for opening the bank account. Here is the most common list of documents that will be required by a reputable bank: · Memorandum and Articles of Association; or Articles of Incorporation · Certificate of Registration/Incorporation; or Certificate of Formation · Official list of directors · Share certificate(s); or Any commercial registry document containing information on the beneficial ownership · An ownership organisation chart - signed · IDs for all Ultimate Beneficial Owners · Proof of the trading address: Bank statement or Utility bill (water, electricity, gas, landline phone) dated within 6 months. · Defined purpose of the SPV · Purpose of the account, expected monthly volumes, currencies and countries involved · VAT number (if apply) Choosing a bank : Choosing a right bank can be a difficult, especially for SPV. However, we have discussed a process of choosing a good bank in this article . Moreover, we can suggest several banks that are onboarding SPVs globally, reach out to us for more information. Filling out the application : Fill out the necessary forms and provide the required documents. The bank may also conduct due diligence to verify the provided information. We highly advise not to exaggerate on volumes to achieve a more favorable pricing. Ongoing due diligence might flag lower than projected volumes and that could lead to account closure or significantly increased fees later on. Comply with regulatory requirements : Be prepared for the bank to conduct anti-money laundering (AML) and know-your-customer (KYC) checks as part of their due diligence process. We strongly recommend to answer any questions from banks compliance department in as much detail as possible. We have witnessed multiple cases where applications get rejected due to the fact that applicants do not provide details required, don’t try to explain their business and structure specificities. Activation : Once account is approved, the bank will provide account details, including account numbers and online banking access if applicable. We recommend to set-up online banking and save the contact details of dedicated account manager or dealer. It's important to note that the process might vary from bank to bank. Due to varying regulatory requirements and the specific nature of SPVs, some banks might have specific preferences or limitations regarding the types of SPVs they're willing to work with. If you’d like us to take a look into your case and share our experience, let us know by filling out the contact form on our website and we’ll get back to you within several business days. Conclusion. Opening bank account for Special Purpose Vehicle (SPV) is not an easy task. It requires understanding the diverse regulatory landscape and the significance of detailed documentation once filling out the bank account opening application. From the strategic choice of a compliant banking partner to meticulous due diligence, our experienced team stands ready to offer tailored guidance and insights for a successful SPV banking journey. Reach out to us for expert assistance in streamlining the process and ensuring compliance in this complex financial realm.

Introduction 1. 💱 Definition of Forex Forward Spread A forex forward spread, often simply called a "forward spread," represents the difference between the current spot exchange rate and the forward rate for a currency pair. This spread is expressed in basis points (pips) and reflects the interest rate differential between the two currencies over a specific time period. Forward spreads are essential components in foreign exchange risk management, allowing businesses to lock in future exchange rates and protect against adverse currency movements. 2. 📉 Why Businesses Use Forward Contracts Businesses engaged in international trade face constant exposure to currency fluctuations that can significantly impact profitability. 📦 Example: A US-based manufacturer purchasing €1M of components can face increased costs if EUR strengthens. Forward contracts eliminate this uncertainty by locking in rates, ensuring predictable costs, stable pricing, and protected profit margins. II. Understanding Forex Forward Spreads 1. 🔍 Forward Spreads vs. Forward Points vs. Forward Rates Forward Points : Basis points added to/subtracted from spot rate Forward Rate : Actual rate for a future transaction Forward Spread : Difference between spot and forward rate (in pips) 2. 🔗 Spot Rates vs. Forward Rates The spot rate represents the current market price for immediate exchange of currencies, while the forward rate is the agreed-upon price for a future exchange. The relationship between these rates is not based on market predictions of where exchange rates will move, but rather on the interest rate differential between the two currencies. This relationship follows the principle of interest rate parity, which suggests that the difference in interest rates between two countries should equal the difference between the forward and spot exchange rates. 3. 💸 Forward Premium vs. Forward Discount When the forward rate is higher than the spot rate, the currency is trading at a forward premium. Conversely, when the forward rate is lower than the spot rate, the currency is trading at a forward discount. For example, if the EUR/USD spot rate is 1.1800 and the 3-month forward rate is 1.1850, the euro is trading at a forward premium of 50 pips against the dollar. This typically occurs when the base currency (EUR) has a lower interest rate than the quote currency (USD). 4. 🧠 Interest Rate Differentials Interest rate differentials are the primary determinant of forward spreads. When a currency with a higher interest rate is exchanged for one with a lower rate, the high-interest currency trades at a forward discount, while the low-interest currency trades at a forward premium. This relationship ensures no risk-free arbitrage opportunities exist between the two currencies. III. Step-by-Step Calculation of Forward Spreads 1. 📐 Formula The basic formula for calculating a forward rate is: Forward Rate = Spot Rate × (1 + Interest Rate of Quote Currency × Time Period) / (1 + Interest Rate of Base Currency × Time Period) Where the time period is expressed in years or fractions of a year. 2. 🧾 Example: EUR/USD Let's calculate a 3-month forward rate for EUR/USD with the following parameters: Spot rate (EUR/USD): 1.1800 EUR interest rate (annual): 0.5% USD interest rate (annual): 2.0% Time period: 3 months (0.25 years) Step 1:  Convert the annual interest rates to decimal form. EUR interest rate: 0.5% = 0.005 USD interest rate: 2.0% = 0.020 Step 2:  Calculate the interest factor for each currency over the time period. EUR interest factor: 1 + (0.005 × 0.25) = 1.00125 USD interest factor: 1 + (0.020 × 0.25) = 1.00500 Step 3:  Apply the forward rate formula. Forward Rate = 1.1800 × (1.00500 / 1.00125) Forward Rate = 1.1800 × 1.00374 Forward Rate = 1.1844 Step 4:  Calculate the forward spread. Forward Spread = Forward Rate - Spot Rate Forward Spread = 1.1844 - 1.1800 Forward Spread = 0.0044 or 44 pips In this example, the EUR/USD is trading at a forward premium of 44 pips for a 3-month contract, reflecting the higher interest rate in the US compared to the Eurozone. 3. 📈 Interpreting the Result The forward rate of 1.1844 means that in our example, you would agree to exchange 1 EUR for 1.1844 USD in three months. The 44-pip premium indicates that the market expects the euro to strengthen against the dollar over the next three months, based solely on the interest rate differential. For a business importing goods from Europe with payment due in three months, this forward rate allows them to lock in the cost at 1.1844 dollars per euro, regardless of how the actual spot rate moves during that period. If the spot rate rises above 1.1844 by the settlement date, the forward contract will have saved money; if it falls below 1.1844, the business would have been better off waiting, but the certainty provided still has value for budgeting and pricing decisions. 4. 🛠️ Tools for Calculations Several tools can assist with forward rate calculations: 💻 TMS platforms (Kyriba, FIS Quantum) 📉 Bloomberg FXFA 🧮 Online calculators provided by major banks and financial institutions 🧾 Excel templates with built-in forward rate formulas Most banks and forex providers also offer calculation services as part of their foreign exchange offerings. IV. Selecting an FX Risk Management Provider 1. 🔍 Three key criteria for evaluating FX providers: i. 💵 Pricing transparency and competitive spreads Look for providers that clearly disclose their pricing structure, including the spread between buy and sell rates and any additional fees. The best providers offer competitive spreads close to the interbank rate and provide detailed transaction cost analysis. Transparency in how forward points are calculated and applied is crucial for evaluating the true cost of your hedging strategy. ii. 🧩 Technology platform and integration capabilities Evaluate the provider's technology platform for user-friendliness, reliability, and integration capabilities with your existing systems. A robust platform should offer real-time market data, automated execution, customizable reporting, and seamless integration with your treasury management or ERP systems. This integration reduces manual processes and minimizes operational risks. iii. 👨‍💼 Risk management expertise and support services The ideal provider should offer more than just execution services. Look for providers with dedicated relationship managers who understand your industry and can provide tailored advice on hedging strategies. They should offer educational resources, market insights, and proactive risk management recommendations based on your specific exposure profile. 2. ❓ Questions to Ask “ What is your typical spread on EUR/USD forward contracts, and how do you calculate forward points? ” “ Can you provide examples of how your platform integrates with common treasury management systems? ” “ What advisory services do you offer to help optimize our hedging strategy, and are these included in your standard fees? ” 3. 🚩 Red Flags 🛑 Lack of transparency in pricing : Providers who are reluctant to disclose their full fee structure or who bundle costs in a way that makes it difficult to understand the true expense of their services. 🛑 Limited flexibility in contract terms : Providers who offer only standardized contracts with little room for customization to meet your specific business needs, or who impose excessive penalties for contract modifications. 4. 🌍 Best-in-Class Providers HSBC : Offers comprehensive FX risk management solutions with strong technology integration and advisory services for businesses of all sizes. Western Union Business Solutions : Provides specialized services for SMEs with competitive pricing and user-friendly platforms. Global Payments : Known for excellent customer service and tailored solutions for specific industry verticals. If you would like to get a comprehensive list of best in class FX forwards providers based on your business case and location, fill out our contact form and we will send it to you by email. V. Contract Setup: A Practical EUR/USD Example 1. 🧱 Components of a forward contract A standard forward contract includes several key components: Trade date : When the contract is agreed upon Value date : The future date when the currencies will be exchanged Currency pair : The two currencies involved in the transaction Contract amount : The amount of currency to be exchanged Forward rate : The agreed exchange rate for the future transaction Settlement instructions : Details on how the exchange will be executed Margin requirements : Any initial and maintenance margin needed 2. 🔧 Contract Example Let's set up a 6-month EUR/USD forward contract for a US company that needs to pay a European supplier €500,000 in six months. i. Contract specifications Trade date : June 1, 2023 Value date : December 1, 2023 (6 months forward) Currency pair : EUR/USD Contract amount : €500,000 Current spot rate : 1.1800 EUR/USD Contract term : 6 months (0.5 years) ii. Spread calculation Using our formula with the following parameters: EUR interest rate: 0.5% annually USD interest rate: 2.0% annually Time period: 0.5 years Forward Rate = 1.1800 × (1 + (0.020 × 0.5)) / (1 + (0.005 × 0.5)) > Forward Rate = 1.1888 The forward spread is 88 pips (1.1888 - 1.1800). iii. Deposit requirements For this contract, the provider requires: Initial margin : 5% of the contract value = €25,000 (or USD equivalent of approximately $29,500) Variation margin : Additional funds may be required if market movements exceed certain thresholds (typically if the mark-to-market value of the contract moves against the client by more than 3%) iv. Settlement terms Settlement method : Physical delivery (actual exchange of currencies) Settlement instructions : The US company will deliver $594,400 (€500,000 × 1.1888) to the provider's designated account, and the provider will deliver €500,000 to the company's euro account or directly to the supplier Settlement window : 2 business days before to 2 business days after the value date (providing some flexibility) 3. 📌 Terms to Negotiate 🔄 Partial delivery options : Negotiate the ability to draw down portions of the forward contract before the maturity date without penalties, providing flexibility if supplier payments are staggered. 📆 Extension provisions : Secure terms that allow for extending the contract if business needs change, with transparent pricing for the extension. ❌ Cancellation terms : Establish favorable early termination conditions with clearly defined costs based on the mark-to-market value of the contract rather than arbitrary penalties. VI. Developing an FX Forwards Strategy 1. 🧾 Assessing Exposure The first step in developing an effective FX forwards strategy is to thoroughly assess and quantify your currency exposure. This involves: Identifying all sources of foreign currency exposure across your business Categorizing exposures by currency, amount, and timing Distinguishing between transaction, translation, and economic exposures Analyzing historical volatility patterns for relevant currency pairs Quantifying the potential impact of currency movements on your financial results For example, a manufacturing company might identify €2 million in quarterly purchases from European suppliers, $1.5 million in monthly revenue from Canadian customers, and £500,000 in semi-annual licensing fees to a UK partner. Each of these exposures would be analyzed for timing, certainty, and potential impact on the company's financial performance. 2. 🧱 Policy development and implementation Based on the exposure assessment, develop a formal FX risk management policy that outlines: Risk tolerance levels and hedging objectives Approved hedging instruments and strategies Hedging ratios and time horizons Roles and responsibilities Reporting requirements Approval processes Specific Example : A US-based software company with significant euro revenue from European clients implements a layered hedging policy. The policy mandates hedging 80% of confirmed euro receivables for the next quarter using forward contracts, 50% of forecasted receivables for quarters 2-4 using a combination of forwards and options, and no hedging beyond 12 months. The CFO must approve any deviations from these guidelines, and the treasury team reports monthly on hedge effectiveness and mark-to-market positions. 3. 🔄 Monitoring and adjustment procedures Once your strategy is implemented, establish procedures for: Regular monitoring of market conditions and currency movements Tracking the effectiveness of existing hedges Evaluating the accuracy of exposure forecasts Adjusting hedges as business conditions change Periodic review and refinement of the overall strategy This monitoring should be conducted at least monthly, with more frequent reviews during periods of high market volatility or significant business changes. 4. ⚔️ When to use forwards vs. other hedging instruments 🛡️ Forward Contracts vs. Options : Forward Contracts : Provide certainty with a fixed exchange rate and no upfront premium. Best when cash flows are certain and budget certainty is the primary goal. Options : Provide protection against adverse movements while allowing participation in favorable movements. Require an upfront premium payment. Best when cash flows are less certain or when preserving upside potential is important. 🔁 Forward Contracts vs. FX Swaps : Forward Contracts : Single transaction for future settlement. Ideal for hedging specific future exposures like payables or receivables. FX Swaps : Combination of a spot transaction and a forward contract in the opposite direction. Best for temporary hedging needs or for extending existing forward contracts without settling the original transaction. VII. Integrating Forward Contracts with Treasury Operations 1. 🏢 Example of how forward contracts fit into broader treasury management A multinational retail company integrates forward contracts into its treasury operations through a comprehensive approach: The company forecasts its currency needs based on purchasing plans and sales projections across different markets. The treasury team then establishes forward contracts to hedge 75% of confirmed exposures for the next quarter. These contracts are recorded in the treasury management system, which automatically tracks maturity dates and settlement requirements. As settlement dates approach, the system generates alerts for the treasury team to prepare necessary funding. When supplier payments come due, the treasury team can either take delivery of the foreign currency from the forward contract to make the payment directly or settle the contract and make the payment separately, depending on which approach is more efficient. The gains or losses from the forward contracts offset the currency impacts on the underlying business transactions, stabilizing the company's effective exchange rates and protecting budgeted margins. 2. 🧑‍🤝‍🧑 Coordination between treasury, accounting, and operations Effective integration requires close coordination between: Treasury : Executes and manages forward contracts based on the company's hedging policy Accounting : Ensures proper hedge accounting treatment and financial reporting Operations/Procurement : Provides accurate forecasts of foreign currency needs and timing Sales : Communicates expected foreign currency revenues and potential timing changes Regular cross-functional meetings help ensure all departments understand how forward contracts impact their areas and how their decisions affect the company's currency exposure. 3. 📝 Reporting Forward contracts require specific accounting treatment under standards like IFRS 9 or ASC 815. Companies must document hedge relationships, assess effectiveness, and properly record mark-to-market valuations. Regulatory reporting may also be required depending on contract size and jurisdiction. Working with accounting professionals familiar with hedge accounting is essential to ensure compliance. 4. 🖥️ Tech Tools Modern treasury management systems (TMS) like Kyriba, FIS Quantum, or GTreasury offer integrated solutions for managing forward contracts alongside other treasury functions. These platforms provide automated workflow for trade execution, confirmation, settlement, accounting entries, and reporting. Integration with ERP systems ensures seamless data flow between treasury and other business functions. VIII. Conclusion Forex forward spreads allow companies to lock in exchange rates and manage volatility through forward contracts. They are essential tools for global businesses looking to stabilize costs, improve budget certainty, and protect against currency fluctuations.

Are you looking to establish a bank account for your e-commerce business? If so, keep reading to discover the steps for opening multiple global bank accounts to meet the banking needs of your international e-commerce operations. Why E-commerce Is a Global Endeavor? E-commerce, as it doesn't stock inventory, relies on suppliers or manufacturers handling product storage, packaging, and direct shipment to customers. Often, the supplier, manufacturer, or shipping partner and the customer are located in different countries. Manufacturing might be cost-effective in some parts of the world, while customers willing to pay for goods are situated elsewhere. Importance of Having a Bank Account for E-commerce: There are numerous reasons why having local or global bank accounts, or a combination of both, is critical for e-commerce businesses. While many e-commerce platforms offer wallet integrations like PayPal and others, having a company-named bank account capable of sending and receiving payments is essential for various reasons: Cost-effectiveness: Local or global bank accounts are notably cheaper than using online payment wallets like PayPal or Payoneer. For instance, PayPal incurs excessive fees for currency exchange and international transactions. As businesses scale up, they tend to seek cost optimization, including payment and currency exchange expenses. Enhanced credibility: Maintaining a dedicated business bank account bolsters your business's credibility when making payments to overseas suppliers, vendors, or shipping partners. It signifies the operation of a legitimate and well-organized business. If you’d like to learn more about overseas supplier payments, we have written a whole peace on that here . Regulatory compliance: In many countries, legal requirements dictate the necessity of a local bank account for e-commerce businesses. Additionally, some local partners might exclusively settle payments to local bank accounts rather than online wallets. Streamlined accounting: A business bank account simplifies accounting and bookkeeping processes, enabling easy tracking of all financial transactions related to your e-commerce business. Payment processing: To receive payments from customers via debit, credit cards, or open banking solutions, a business bank account is often required to link to your e-commerce store through payment processors like Stripe or Adyen. Financial management assistance: Business bank accounts offer tools and features tailored for business owners, including business credit cards, lines of credit, and financial management software integration, aiding in more effective financial management and potentially accessing capital for growth or risk reduction. How to Open a Bank Account for an E-commerce Company? Establishing a bank account for an e-commerce company involves several straightforward steps, which we'll outline below: Determine your company structure, considering how it impacts the type of bank account you can open. The structure might range from a sole proprietorship to a corporation, with offshore jurisdictions potentially influencing account opening complexities. If you have been wondering about moving your company to an offshore jurisdiction, to lower your corporate tax, we have covered some tips and tricks in this article . Research and select a bank that aligns with your business requirements, considering factors like fees, online platforms, services offered, and specific account requirements. If you would like to receive an up to date list of e-commerce friendly banks, reach out to us and we will share it via email. Prepare the necessary documents for due diligence, such as incorporation certificates, ownership organization charts, IDs for beneficial owners, proof of address, business plan, and VAT registration. Review and sign agreements provided by the bank, outlining terms and conditions for your business account. Upon approval, the bank will furnish you with your new business bank account details for invoicing and other operational processes. Set up online or mobile banking services to manage your account, monitor transactions, and conduct electronic transfers. In Conclusion Acquiring a bank account for your e-commerce business is pivotal for financial management and compliance with legal and tax obligations. Following specific bank procedures and consulting with financial experts or legal advisors can be beneficial, especially for complex business needs or legal structures.

Looking for to open a bank account for your drop shipping business? Then keep reading on as we will uncover how to open multiple global bank accounts to cover the banking needs of your international operation. Why Drop Shipping Is A Global Operation? As drop shipping business is not holding any inventory it relies on suppliers or manufacturers who handle the storage, packaging, and shipping of the products directly to the customers. The supplier, manufacturer or shipping partner and the customer are most probably not from the same country. Manufacturing is cheap in some parts of the world and clients that are willing to pay for goods more are based somewhere else. Why Having A Bank Account For Drop Shipping Is Important? There are several reasons why having local or global bank account or a mix of those two is important. A lot of drop shipping platforms offer wallet integrations such as PayPal and others but having a bank account in the name of your company and able to collect or send payments is vital for these reasons: It is cheaper. Having a local or global bank accounts is much cheaper than using online payment wallets like PayPal or Payoneer. For example, PayPal has excessive fees for currency exchange and international payments. Many businesses that reaches a certain scale, will be looking to optimize their costs that looked insignificant when there was no scale. One of those costs is obviously payments and currency exchange. We have already covered steps on how to optimize payments and FX here and also how to choose a right payments provider here . If you would like to get an up to date list of global and local banks that are drop shipping friendly, contact us and we will share it with you. It is more credible. Having a dedicated business bank account can enhance your business's credibility when making payments to overseas suppliers and vendors, or shipping partners. It's a sign that you are running a legitimate and well organized business. It is more regulatory compliant. Many countries have legal requirements that mandate businesses to have a local bank account. Moreover, some local partners may only settle payments to local bank accounts instead of online wallets. For example, if you wish to sell products using Afterpay or Klarna in Australia, you will only be able to receive settlements from your sales into a local dedicated bank account. A similar story is with paying local taxes and VAT. Those can only be paid from a bank account and often with a local credentials (for example IBAN). IN some instances, local vIBAN can be a solution and more about those you can read here . Think about accounting and bookkeeping duties. A business bank account simplifies bookkeeping and accounting processes. You can easily track all financial transactions related to your drop shipping business, making it easier to prepare financial statements, pay taxes, and evaluate the health of your business. How about payment processing. To receive payments from customers via debit, credit cards or open banking solution, you'll need a payment processor or payment gateway. This is especially important if you accept online payments, as most payment processors and platforms, such as Stripe and Adyen, require a business bank account to link to your e-commerce store. It helps with financial management of the company. A business bank account can offer you tools and features specifically designed for business owners, such as business credit cards, lines of credit, and financial management software integration and treasury management. These can help you manage your finances more effectively and potentially access capital for growth or reduce financial risks such as currency exchange rate fluctuations, which we talked about in this article . How To Open Bank Account For Drop Shipping Company? Simple Steps. As always, opening a bank account for any company, including a drop shipping company, involves several simple steps that we are going to discuss below. If you have any questions or would like to get an up to date list of banks that are drop shipping friendly, contact us and we will send it to you . Choosing a company structure. Determine the legal structure of your drop shipping business. Common options include sole proprietorship, partnership, LLC (Limited Liability Company), or corporation. Your choice may affect the type of bank account you can open. For example, if you incorporate a company in an offshore jurisdiction, it will be harder to open bank accounts. The structure choice depends on the size of your business operation, the larger the size, more complex the structure involving local subsidiaries and probably a holding. Choosing a bank. Research and choose a bank that suits your business needs. Consider factors like fees, the bank's online platform or mobile app, services offered, and any specific requirements they have for business accounts. You may also find this article useful where we discuss it more broadly. Preparing the documents. Any bank in the world will require a set of documents to open an account. Here is a list of most common documentation that is required for bank’s due diligence process: · Memorandum and Articles of Association; or Articles of Incorporation · Certificate of Registration/Incorporation; · Share certificate(s); or Any commercial registry document containing information on the beneficial ownership · An ownership organisation chart; · IDs for all Ultimate Beneficial Owners · Proof of the trading address: Bank statement or Utility bill (water, electricity, gas, landline phone) dated within 3-6 months. · Business plan or explanation of business nature · Purpose of the account, expected monthly volumes, currencies and countries involved – explanation letter or document. This part is very important as your commercial terms will be based on your business nature/volumes/operations. · VAT registration Signing agreements and commercial terms. Review and sign any agreements or contracts provided by the bank, including the negotiated commercial terms. These agreements outline the terms and conditions for your business account. Receiving the account details . After your application is approved, the bank will provide you with your new business bank account details, that you will use for invoicing and other processes. Setting up online or mobile banking. Most banks offer online and mobile banking services. Be sure to set up online access to manage your account, monitor transactions, and make electronic transfers as well as consult with banks representatives regarding further services such as treasury or FX management. Conclusion Opening a bank account for your drop shipping business is crucial for managing finances, ensuring compliance with legal and tax requirements. It's essential to follow the specific procedures and requirements of the bank you choose, and it's advisable to consult with a financial advisor or attorney for guidance, especially if you have complex business needs or legal structures.

In this article we will talk about how Crypto VASP entity can open a bank account for own operational purposes and also client funds account. Crypto license in Europe or otherwise know as VASP license (Virtual Asset Services Provider) has become a very popular options for companies looking to provide crypto related services to end clients. VASP companies have permission to provide exchange services for various virtual assets, such as utility tokens and coins. However, they are not permitted to trade security tokens, as this requires an additional license as an investment firm. They can facilitate the conversion of cryptocurrency to traditional fiat currency and vice versa. Often, VASP license is combined together with EMI license to have a broader addressable market by unifying both fiat and crypto offerings. Most popular countries (as of end of 2023) for VASP licensing are: 1) Lithuania with 473 license holders 2) Estonia with 86 license holders 3) France with 73 license holders 4) Spain with 57 license holders 5) United Kingdom with 41 license holders Opening Operational Bank Account For Crypto VASP Entity An operational bank account owned by a VASP entity, often referred to as a "corporate bank account," serves as a crucial financial tool for various purposes. In general, financial licensed institutions, such as banks, Fintechs, Crypto VASPs, maintain these accounts for several reasons: managing liquidity, covering operational expenses, meeting regulatory requirements, holding mandatory reserves as per regulations, securities settlements and clearing, risk management, capital adequacy, financial reporting purposes, etc. Essentially, operational bank accounts owned by financial institutions and Crypto VASPs are essential tools for managing their day-to-day operations. Opening operational bank account or corporate bank account for any financial institution or Crypto VASP entity is as straight forward process as opening regular corporate bank account. We have covered this extensively in this article . If you would like to get an up to date list of VASP friendly banks, do not hesitate to contact us . Opening Client Funds Account For Crypto VASP Entity A client funds account, also known as a segregated client account, is a specialised type of bank account owned by financial institutions for the purpose of holding and managing funds that belong to their clients. These accounts are typically used by financial institutions such as brokerage firms, investment companies, Fintechs and also Crypto VASPs. There are several reasons why a crypto VASP needs client funds account: For clients deposits and withdrawals (C2B and B2C flows) : client funds accounts are essential for managing client deposits and withdrawals in both customer-to-business (C2B) and business-to-customer (B2C) financial flows. Segregated client fund accounts are obviously segregated from VASP own operational funds account, in order to protect client funds and mitigate risk. Also it is easier to track and account for client fund movements. Moreover, once the interest rates started going up, in some cases, client funds accounts may earn interest on client deposits. This interest can be accrued and paid out to clients, providing them with a return on their deposited funds. Additionally, regulators often require financial institutions to maintain detailed records of client deposits and withdrawals. Client funds accounts help in generating the necessary reports and audit trails to demonstrate compliance with these requirements. From the clients perspective, knowing that their deposits are held in a segregated client funds account can instill confidence. They have assurance that their money is being handled responsibly and securely. Client Money Protection: client funds accounts provide a layer of protection for client assets. In the event of financial institution insolvency or bankruptcy, client funds are typically shielded from the institution's creditors, ensuring that clients can recover their funds. Settlement and Transaction Processing: VASPs are the transaction based businesses and client funds accounts are essential for the settlement and processing of these transactions. They serve as a temporary holding place for funds until the transaction is completed. Moving forward, the process of opening a client funds account can vary. However, here are the general steps typically involved in opening a client funds account: Choosing the bank: he first step is to select a reputable banking provider that offers the type of client funds account you need. We have covered this topic extensively in this article . Submit the application : selected banking provider will ask you to prepare application forms for opening a client funds account. You will need to fill out these forms with accurate information: company information form, Wolfsbergs Questionnaire, AML/KYC procedures forms, country risk matrix, volume forecasts, and similar. Provide documentation: f inancial institutions typically require certain documentation to verify they UBOs and the entity itself . These documents may include: For individuals: a government-issued photo ID (e.g., driver's license, passport), proof of address (e.g., utility bill), and possibly a social security number or tax identification number. For legal entities: business registration documents, tax identification numbers, articles of incorporation, and ownership information. Agree to Terms and Conditions: review and agree to the terms and conditions, including any specific agreements related to the client funds account, such as minimum commitment, fee schedule, annexes. Pay attention to any extra fees, withdrawal policies, and any restrictions that may apply. In addition, we recommend to double check for policies allowing the banking institution to halt any payments and request additional information, especially related to client transactions. Receive account details and integrate via API : once your client funds account is approved, you will receive account details, which typically include an account number, routing information (for wire transfers), and any login credentials for online account access, if applicable. Do not forget to automate the banking processes using API integration by requesting API documentation and Sandbox for testing, prior the account approval, so there is plenty of time to prepare/test. Start using the account: with your client funds account now open and funded, you can begin using it for its intended purpose, such as holding client funds, processing transactions, or managing deposits and withdrawals. Remember that the specific requirements and processes can vary between financial institutions and regions. If you would like get our opinion on your situation or receive an up to date list of banks that can open one or another type of bank account for Crypto related business or entity with a VASP license, reach out to us by submitting contact form and we will get back to you with some useful tips! Conclusion In conclusion, opening operational and client funds accounts for Crypto VASP entities, is pivotal for effective financial management and regulatory compliance in the cryptocurrency industry. Operational bank accounts serve a range of functions, while client funds accounts protect assets and enhance transaction efficiency. Navigating the account opening process with due diligence and compliance is essential for ensuring the success and security of crypto-related activities.

In this article we will talk about how African companies can open bank accounts in the EU or UK and conduct business in local currency. It is not a secret that over the last five years, African economies and digital businesses have experienced significant growth and expansion due to a combination of factors, including increased access to technology, favorable demographics, and a growing entrepreneurial spirit. Such economic growth was fueled by rapid internet penetration allowing digital entrepreneurs to target foreign and more developed economies in client pursuit. Another key factor is that African nations have a predominantly youthful population which is growing at a rapid rate. This demographic advantage has attracted tech companies and entrepreneurs to invest in the region, targeting a market with significant potential for digital products and services. In turn it has helped E-commerce businesses to experience a substantial growth across Africa, with companies like Jumia, Konga, and Takealot expanding their operations. Africa has been at the forefront of fintech innovation too, with mobile money services like M-Pesa in Kenya and various digital banking platforms gaining traction. So in the past several years, African businesses have thrived due to increased internet access, and growing investment in sectors like e-commerce, fintech, and agri-tech. This growth has been further fueled by increased government support, improved infrastructure, and a burgeoning entrepreneurial ecosystem. 5 Reasons Why African Businesses Need EU Based Bank Accounts African businesses that deal with international clients may need bank accounts in Europe or UK to conduct business in local or international currency (such as EUR, USD, GBP, CHF, etc.) for several reasons: Currency Exchange and Risk Management: having a European bank account allows African businesses to conduct transactions in the local currency of their European trading partners, reducing the need for currency exchange and associated costs. It also helps mitigate currency risk, as fluctuations in exchange rates can impact the profitability of international transactions. Operational Efficiency: a local European bank account can streamline financial operations for African businesses operating in Europe. They can pay suppliers, receive payments from customers, and manage expenses in the local currency more efficiently, avoiding delays and complications associated with international wire transfers and currency conversions. Credibility and Trust: having a local bank account in Europe can enhance the credibility of African businesses in the eyes of European clients, partners, and regulatory authorities. It demonstrates commitment to the local market and simplifies financial interactions with European entities. Regulatory Compliance: some European countries may have specific regulatory requirements or restrictions when it comes to financial transactions with foreign entities. Having a local bank account can facilitate compliance with these regulations, making it easier for African businesses to operate within the legal framework of the European market. Taxation and Reporting: having a local bank account can help simplify tax reporting and compliance with local tax authorities in Europe, as financial transactions are conducted in the local currency and may be subject to local tax regulations. 3 Smart Ways To Move Money Between Europe And Africa Bank Transfers: using international bank transfers or wire transfers through established financial institutions. This method offers security and reliability, but it can be expensive due to fees and unfavorable exchange rates. To minimize costs, consider using online platforms that specialize in international money transfers. For example, several banks that Epico Finance works with offer a wide range of wire transfers in local African currencies such as: Botswanan Pula, Ghanaian Cedi, Kenyan Shilling, Lesotho Loti, Mauritian Rupee, Malawian Kwacha, Nigerian Naira, Tunisian Dinar, Ugandan Shilling, South African Rand, Zambian Kwacha, Egyptian Pound, etc. Cryptocurrency: cryptocurrencies like Bitcoin, Ethereum or stable coins for cross-border transactions are widely used in African business ecosystem. Cryptocurrencies can provide fast and relatively inexpensive transfers. There are a lot of on-ramp and off-ramp platform that can easily exchange stable coins to fiat and vice versa, with an instant fiat settlement into virtual IBAN . Epico Finance works with several such platforms that can bridge the gap between fiat and crypto in a single ecosystem. If you’d like to learn more about crypto to fiat solutions, contact us via a contact form. Foreign Exchange (Forex) Brokers: forex brokers specialising in international currency exchange can offer competitive rates for large transactions. How Can African Company Open A Bank Account In Europe? We have already discussed how African business can benefit from having European or UK based bank account and what are smart ways to move funds between the two continents. Next move is understanding how can actually African businesses open a bank account in the European Union or UK by following a series of steps. First it is important to understand, which country or countries are the main markets for the African entity. A priority would be to have a local bank account with a local IBAN. However, EEA is very open and majority of the banks offer multi-currency accounts therefore any jurisdiction within the EEA would serve the purpose. We usually advise businesses to seek UK based accounts with multi-currency GB IBANs. Selecting a bank is the next important step. We have already covered that topic extensively int this article here . Look for banks with experience in serving international clients and expertise in your industry. We can suggest a list of banks that fits your business model and flow of funds, get in touch with us here . After bank is chosen, financial institutions typically have specific documentation requirements. Commonly requested documents include: Business Registration: provide proof of your business's legal registration in your home country and any necessary certifications. Business Plan: detail your business activities, financial projections, and the purpose of the EU bank account. KYC Documents: Know Your Customer (KYC) documents such as passports, identification documents, and proof of address for the business owners, directors, and authorized signatories. Corporate Documents: Provide corporate documents such as articles of incorporation, a certificate of good standing, and any relevant licenses. Once the bank reviews and approves your application, you can proceed to open the business bank account. This may involve signing account agreements and providing the initial deposit. In addition, many EU banks offer online banking services, allowing you to manage your account remotely or via a mobile application. Ensure you have access to these services for convenient day-to-day operations. If your business deals with multiple currencies, inquire about the availability of multi-currency accounts or foreign exchange services to manage transactions efficiently. Usually banks adjust their pricing for such transactions based on volumes and currency pairs. If more currency and payments business can be transferred to that specific bank, the better rates can be achieved. And let’s not forget that many banks in the EU or UK can provide a dedicated relationship manager or FX dealer. You can read more about currency management tips in our article here . And lastly, it is extremely important to stay informed about EU banking regulations and compliance requirements, as these may change over time. Ensure your business continues to meet all regulatory obligations. Conclusion As seen from tremendous growth in the African digital business landscape, more and more companies are seeking clients, suppliers or partners in the EU. Naturally, a requirement of local business accounts arise and such accounts can be opened based on several steps. To open a bank account in the EU for an African business, the process involves choosing a bank, preparing required documents, complying with regulatory requirements, opening the account, setting up online banking, considering currency needs and maintaining compliance.

In this article we will talk about ways of lowering taxes for digital business legally so that entrepreneurs could keep more of their own wealth and money. A lot of people run online businesses, starting with ecommerce, to online marketing, consulting, media, or doing any type of business where they are generating revenue online, by using credit or debit cards via payment gateway or collecting transfer from clients (more about payment gateways and card processing in this article ). Usually online entrepreneurs are looking into places like Dubai (UAE) to lower their taxes by establishing a company in a free zone there. And it is a good way to lower corporate tax to 0%. But how do you also keep payment processors and clients happy when they are paying you to your local account? Often clients are from non-offshore jurisdictions like UK or EU and they might not want to pay using AED to your local UAE bank account. So how can you make your clients happy when they need to pay to your company account, even though your company is set-up in off-shore jurisdiction so that you can legally pay 0% corporate or income tax? Here are simple steps: Intermediary structure: a simple structure is to have two different entities – one is UAE company (or any other traditional offshore entity) and a company somewhere else to have payment processors or payment methods. The UAE entity can be a marketing management entity, and the other company (onshore that deals with clients) would then send money to your marketing company based in UAE, that is going to be the one paying 0% corporate tax. Such structure is called intermediary company structure where the goal is to have an intermediary step in front of offshore entity. Onshore bank account: another great tactic is to have an onshore bank account for your offshore entity that you can incorporate in any of the traditional offshore jurisdictions such as UAE, Belize, Seychelles, Mauritius, BVI and so on. Opening EU or UK based bank account for offshore company is not an easy task. A lot of banks will refuse such account opening, while fintech and digital banks will require first having an EU based account with other bank or provider before opening an account with them. Or having a local based account with local bank first is a must and even so they can only provide nested accounts without individual named IBANs. But there is still a few players in the market, that can open EU or UK for offshore entities without these strict requirements. However, a full due diligence will be carried out before account opening. We can recommend best digitals banks for offshore entity account with individual named account IBAN in the EU or UK, do not hesitate to get in touch with us . Having named account in the EU or UK, would automatically allow you to collect payments from global clients in their local currency and will easy business dealings. How to incorporate a company in Dubai Free Zone or any other traditional offshore Jurisdiction? Often people want to reduce their corporate tax close to 0% but don’t know where to start. It is indeed possible to do everything on your own when it comes to company in incorporation and setting up bank accounts. However, some jurisdictions have requirements for local directors or even an office. The most straight forward way is to work with corporate services provider that will handle everything from A to Z when it comes to company set-up in a specific jurisdiction. Yes, it might not be the lowest cost pathway but it will guarantee that everything will be done in-line with local compliance. We work with several corporate service providers around the world helping their clients to set-up bank accounts for their newly established companies. We would be happy to recommend corporate service providers based on your desired jurisdiction. Conclusion There are several ways to lower corporate taxes as low as 0%. It depends on the clients that a specific business is serving and how the owner wants to structure the group. The two viable solutions are low cost and low maintenance solutions that were discussed in detail.

Why Are Cross-Border Payments Expensive? If you’ve ever been wondering why cross-border payments are expensive, then please keep reading on. It can often seem like cross-border payments are highly priced, even though they're just simple transactions. Especially for smaller value payments, or SME payments, which are small in value and can be infrequent. There are several reasons why cross-border payments have high costs associated with them: Correspondent Banking. All cross-border payments go through the correspondent banking network, which involves intermediary banks moving money for you. Each intermediary will be charging a fee along the way. You might ask: Why do bigger companies get their cross-border payments cheaper? It is simple—because of wholesale correspondent banking. It works in a way that specialised payment companies get their payment routes from top-tier banks, such as Deutsche Bank, Citi, Barclays, etc. Their own cost is relatively low as they are buying the service in bulk. When they resell to the end client, this means that the end client’s cross-border payment will be going through the Top Tier Bank. And this is where the wholesale service initially came from. Logically, SME will be charged a higher price for any payments due to the low value and infrequency of transactions, while a big corporation will have thousands of payments. Eventually, huge volumes will create more business for payment specialists and a better price for big corporate clients. Profitability. The business of cross-border payments is highly profitable, and the institutions moving money internationally are incentivized to keep it that way. The banks will continue charging fees as long as the market participants are willing to pay them. Anyhow, some digital banks and payment specialists are disrupting this market with very low fees or even no fees. But in the end, if they have to pay for correspondent banking services, they will eventually need to charge something to their clients. Regulatory costs . There are other costs that clients do not see. Being compliant with the regulation is an expensive process. Moreover, each bank or cross-border payments company has to have KYC (know your client) and AML (anti-money laundering) procedures and people on its payroll that will implement those procedures. This is a heavy financial burden for those institutions. Foreign exchange costs Most cross-border payments involve currency conversion, which can impact the ultimate cost of that transaction. Usually, currency conversion is not cheap because several parties are involved in such transactions and each of them has to make a profit. For example, if an SME client is charged a 1% fee for EUR/USD conversion, the payments company or a bank is getting the same liquidity for 0.05% or less. In the case of bigger banks, the cost of converting major currencies via direct market access can be very close to zero. Geography. It is true that some regions are heavily unbanked, which means that cross-border payment penetration into those regions becomes a difficult task. Finding a suitable cross-border payment route to an unbanked region might inflate the cost of the transaction due to the many correspondent banks involved. In some regions, people do not even use electronic money. So the transaction must reach the final recipient in the form of cash. And that can complicate the process even more. How Can I Send Cross-Border Payments? It is now clear that cross-border payments are more complicated than they appear at first glance.There are some factors to account for, so the price of cross-border payments is high. Even so, there are payment specialists in our network that specialise in cross-border payments and foreign exchange and can offer cross-border payments at a much lower cost than local banks. It is an easy and straight-forward bank account opening process for cross-border payments with our partner banks that will eventually save your time, money, and nerves while transacting internationally. Reach out to us to get introduced to the most cost-saving banking platform across the globe. Conclusion Cross-border payments can be more difficult than they seem. Each intermediary involved in a cross-border payments transaction is getting a cut, which eventually inflates the ultimate fee for the transaction. But you can save on those cross-border payment transactions with our team's help.

If you are wondering how to open a bank account for crypto business, then keep reading as we are going to deep dive into this. The majority of traditional banks and payment institutions, or EMIs, are not opening accounts for crypto-related businesses, and there is a fundamental reason for this: money laundering. Why Opening A Bank Account For Crypto Business Is So Hard? Compliance, compliance, and compliance. It is extremely hard or impossible to determine where the money is coming from. Essentially, any financial institution faces a money laundering risk.And such risks are not tolerable, especially for institutions that have top-tier banks as correspondents. The problem with crypto is that it is extremely hard to determine where the funds came from. Even if the crypto firm is paying regular employees or utilities, such as phone or internet bills, the money was earned in the crypto trading or exchange-related business where users could interact and trade in an undisclosed manner. Crypto-Friendly Banks and Payment Companies: What to Look For? There are a huge variety of digital banks and payment providers that serve high-risk industries, but only a small number of those will actually be looking to open accounts for crypto businesses. Still, there are some, and as such a selection is small, there are some things to pay attention to: Licence. It is critical that the firm be licenced on-shore, preferably within the EU. Named IBANs. In case some PSP approves your crypto business, find out if you are going to be provided with an IBAN . Currencies. The reason we put this as a separate checkpoint is because it is extremely hard to have payment and accounts supported in USD for crypto business, as the majority of USD correspondents are very strict in regards to such transactions. It would be really nice to have multiple currencies available, not just the euro. Fees. As the number of institutions willing to open an account for crypto-related business is so small, they are usually very aggressive with fees, as the high risk of banking such clients has to be justified. Even though there are ways to reduce such fees to a minimum, And we help clients negotiate that. Ongoing compliance. It is important to be aware of ongoing compliance with any payments company, as it may cause a lot of operational obstacles. There are a few things to ask before opening an account for crypto business so that there is an understanding of what ongoing compliance will look like: Transfer limits. What are the limits of money transfers before payments get stopped for a compliance check? Number of payments allowed. Is there a certain number of payments that can or cannot be processed within a certain period of time? Types of documents to support payments. Sooner or later, you will be asked by the payment company's compliance department to provide documents supporting the transfer. Be ready and have a clear understanding of what kind of documents will be accepted and how often this will be required. Monthly minimums. Will there be any minimums to adhere to? Or similar questions that might look important for your crypto business. Conclusion. All in all, it is not easy to open an account for crypto business. Therefore, it is important to have someone besides you who can help, and that is why we are ready to help you! Reach out to us and get a consultation from our expert team!

What is Payment Automation? If you've ever wondered how to automate your business payment with API connect, then keep reading on. Saving time has never been as important as it is today, and business owners are looking to save time, automate, and become more efficient. Such an approach leads to investing time where it pays off. Banking used to consume lots of time for business owners and their accountants. But times have changed. Nowadays, everyone can automate their payments via API connectivity, which is seamless and cheap. Plugging into a fully automated API that comprises an extensive suite of business-ready payment and reporting solutions And such solutions can be seamlessly integrated with existing back-office systems. Such automated payment systems can resolve many problems for businesses and their accounting departments. What Are the Benefits of Payments Automation? First of all, a stable payment system based on APIs will automate a lot of internal processes. Payments APIs from the best banking platforms are built on a suite of microservices to mitigate systematic risk and failures. Secondly, API is made seamless by an ERP or TMS that automates your management exposure with full reconciliation and real-time transaction reporting. On top of that, it is secure, as it was created by experienced developers and is securely encrypted, including restrictions and the latest authentication procedures. And finally, the payments company will support your integration in order to leverage the cutting-edge API technology with a whole suite of services. How Do I Get an Automated Payments System? We are collaborating with leading payments specialists across the globe that are helping SME’s, mid- to large-sized companies, and even other payment companies bank effortlessly via API connectivity. There are many companies from various industries and verticals that have already integrated via API technology and are leveraging payment networks to route thousands of payments daily. Reach out to us, and we will introduce you to top-tier banking service providers that will fit your business and help you save on payment costs. Our partner's payments API features include: Streamlined Processing - By connecting your business to an API-integrated suite of services, you can gain greater business payment control and collections with cost-effective foreign exchange conversion. Global payments reach - via API, you get access to a wide global payments network that is able to provide a complete cross-border pay-out solution. This enables your organisation to create payments in over 100 different currencies. Competitive rates - our partners are bank agnostic and have access to a variety of top-tier banks for their payment execution. Such a network is able to deliver more competitive rates and the best choice for payment routing. Automatic validation - a function that ensures all your payments are delivered on time by automating appropriate country rules. Our partners are aware of what information is needed to avoid payment returns. Compliance - The API connection allows you to keep up with the latest international legislation in order to ensure that all payments are never compromised. Conclusion Even though they can be easily automated with API connections, traditional banking and accounting still take a lot of time and work. In case you’re looking for multi-currency account services, we have a whole article on how to choose the best payments provider here .

If you are wondering how to open a bank account for a holding company, then keep reading. We are going to discuss the pros and cons of having a centralised multi-currency account for holding companies and separate accounts for holding companies. There are several factors to take into account, such as where the directors are based, transfer pricing, and different banks supporting different subsidiaries. Business Banking for Companies Owned by a Holding Company It is hard to open bank accounts for companies owned by the holding company. Regular banks are not keen to provide services to such corporate structures, and there are several reasons for that. For example, non-resident directors, or UBOs. Traditional banks usually require directors of the company to be residents of the country where the company is registered and operational. The appetite for risk among major financial institutions is often limited. While complex corporate structures pose risks and regulatory pressure, there are a few ways to reduce such risks, for example by having the same banking provider for the whole structure. Since one entity is onboarded by the bank or fintech, the rest should pass through compliance easier as the risk profile is already established within the compliance department. In addition, banks look at the business activities of the holding and its subsidiaries. It is much easier to open banking facilities when all entities are engaged in the same sector or business activity. Or are serving each other in the same industry with clear activity segregation (horizontal integration of businesses)? Moreover, if currency operations are centralised with the holding parent, transfer pricing kicks in and can cause extra layers of accounting. Quite often, it is more simple to have separate multi-currency accounts for holding owned companies. Practical Account Opening Steps for Holding Companies Before submitting your account opening application, you have to prepare it to be in line with what the bank is expecting from you. It helps if you are going to think like the bank thinks. Banks and fintechs want clarity and transparency in regards to the group or holding structure, source of funds, etc. You should prepare a clear and understandable organisation chart showcasing the links between companies and their ultimate beneficial owners. A detailed business activity description is especially needed, as from our consulting and work experience in banks, we know how badly compliance people want to understand the purpose of the account and source of payments. In addition, it is important to prepare some business activity-related invoices that can actually prove the business activity is legitimate and in line with what is being described. If holding companies are newly established, it is even more difficult. Banks do not want to touch newly formed holding companies. Digital banks and fintechs are very careful too. In our experience with clients, one trick that works is to submit an application for account opening with a traditional bank, and once the bank responds that the application has been received and is being reviewed, submit the same application to a fintech company, adding the bank's response. It shows that your company is pursuing traditional bank accounts and that fintech is not the last resort, which puts a lot of fintech companies off. It is also extremely important to justify non-resident directorships. It really helps if a parent or holding company opens a subsidiary directly as a 100% owner rather than with mixed ownership. This would signal the bank that you are just expanding the business in another country. Every instance is very different, as holdings are special corporate actors. We have helped multiple holding companies with account opening, and if you are looking for tips or help, do not hesitate to reach out to us for a free consultation or an introduction to favourable banking providers. Conclusion All in all, banks and FinTechs are very careful with holdings and holding companies. In the past few years, financial service providers have become more restrictive in regards to complex corporate structures; therefore, it is important to prepare the bank account opening application in a way that the banks want to see it. We can help you do exactly so; reach out to us for more information.