6 benefits of opening a multi-currency wallet (especially if you’re expanding globally)
Are you an entrepreneur on your way to building the next international business empire?
It’s now become easier and cheaper to connect with suppliers from around the world, and sell your products globally. But if you’re operating your finances from a business account that only supports one currency, sooner or later you’re going to get tired of dealing with slow processes and high fees when making and receiving payments to and from your international customers. Thankfully, the solution is simple. Read on to learn the benefits of a multi-currency wallet when you’re running a cross-border business.
1. No more funds lost in currency conversion
Using a multi-currency wallet with local payment instructions allows you to pay and receive funds as a local.
In other words, there is no money lost to currency conversion. This is the case when your international customers have to make transfers to an account in a different currency. Your customers in Europe can pay you in euros, and your customers in the US in dollars. In turn, you’ll be able to pay any contractors or suppliers in, for example, Europe using Euros.
As you expand and grow your business, and revenue volume increases, using a multi-currency wallet is going to save you a great deal of money.
2. Avoid hidden international transfer fees
Here’s a common scenario for many international traders: a customer told you they’ve paid you €1000. You check the conversion rates of your bank. But even after the conversion fees, there seems to be €100 missing. You contact your customer to double check the amount they sent. They get back to you with a screenshot of their online banking that shows they sent you the €1000 in full.
Usually, it has to do with hidden international fees, taken at various points of your transfer.
The receiving bank in Hong Kong may have taken a small fee for receiving the international transfer. This is usually no more than around HK$50. The rest of the amount in this example are usually fees that are taken by middlemen. The so-called intermediary or correspondent banks. Many banks use a network of partner banks to help them make international transfers around the world. These partner banks often charge fees that aren’t usually transparent to the customer.
By doing business with a multi-currency wallet – especially one that provides you with local collection instructions – you can avoid all of this confusion, and receive all your money in full.
3. Offer a better experience for your customers
As entrepreneurs, most of us aim to delight our customers, and give them a streamlined and uncomplicated customer experience.
The last thing you want is to force your customer to go to a bank branch in order to pay you, and go through a complicated process of making an international payment (that’s likely going to also cost them money)
In the worst case, the customer may get confused by account numbers that are formatted differently than in their home country and the transfer will never arrive and bounce back to their bank account later.
By providing payment instructions they’re familiar with (a.k.a. in the same jurisdiction as your customer), you’re making it easy for them to pay you, which ultimately leads to happier customers.
4. Manage all your wallets from one platform
An alternative to getting a multi-currency wallet might be to open multiple bank accounts in different jurisdictions. The challenge with this is that banks may not always be able to open an account for companies incorporated outside of the bank’s location. Even if they are, it takes time and effort on your part to apply, and then more time as they review your application.
On the other hand, with the Neat account you can have an overview of your company’s total funds in a glance, instead of having to switch back and forth between all the dashboards and calculating it yourself.
When you manage everything from the Neat account, it’s also just a whole lot easier to keep track of your income and expenses.
5. Ease your reconciliation & accounting processes
With a multi-currency wallet, your end of month accounting becomes a whole lot easier.
Often when you receive international transfers, the amount you receive may be a little different (a.k.a. less!) from what you expected. You may have asked your customers to use reference numbers. But not all of them always do, or the message may not be passed on correctly. Especially if you receive a high volume of bank transfers, you may end up wasting hours each month on trying to reconcile your payments.
6. No more waiting times
International transfers take time. This is a truth we all know and hate.
When you’re running your own business, you’re moving quickly. Your days are full. You don’t have time to keep checking in to see if that large payment you’re counting on has finally arrived in your account.
Using a multi-currency wallet in the same country as your customer means you don’t have to wait days for your payments to go through.
Open a multi-currency wallet for your business
A multi-currency wallet is a must-have for any entrepreneurs looking to grow their businesses globally – and we’re happy to say that if that’s you, we’re there for you.