Growing internationally presents amazing opportunities for your business. But it's not always easy – expenditure can outpace income, and exchanging currencies can really eat into your profit margin.
As international business owners ourselves, we understand that, especially now, every pound – or dollar, yen, or euro – counts.
Read on to learn how an International Business Account can help you save money and produce more accurate financial forecasts for your company.
Make cashflow forecasting more accurate
Rapid growth is great, but only if your cash flow can keep up. If it can't, that growth isn't sustainable and your business could face disaster.
That's why it's critical to plan for the future by setting up a cash flow forecast. This can help you determine whether your expansion plans are viable, or something needs to change before you put them into motion.
As someone who’s scaling a business internationally, you know this. You also know that one of the most challenging aspects of an accurate forecast is getting high quality data on where you’re at right now. This is particularly difficult when you’ve got different accounts spread all over the place, in a range of different currencies.
One of the key advantages to using an account like 3S Money’s International Business Account is that it’s easy to see a consolidated view of your cash position, all in one place.
Avoid bank fees when trading internationally
International business is a great way to increase revenue. However, it also presents plenty of opportunities to lose money.
Say you're based in the UK. You've found an excellent market for your product in Slovakia and have taken the time to find a great distributor. You want to pay them – obviously in their local currency, euros – so you set up a wire transfer at your bank and punch in their IBAN and SWIFT code.
You send the payment, but see it's £150 more than you expected. What happened? Well, you've been hit with a foreign transaction fee. If you send many payments across borders, you're going to be spending much more than necessary in transaction fees.
Why do we say, "more than necessary"? Because with many bank challengers – including 3S Money – you wouldn't have to pay these fees. With our International Business Account, you can send money directly to distributors or suppliers for just $1 per transaction.
Send $1000, pay $1001. Send $10,000, pay $10,001. It's as simple as that.
Banks can also charge fees to receive wire transfers. When receiving money through 3S Money, you'll pay nothing.
Make payments easier
Making payment as easy as possible for your customers is an important way to make sure you're paid on time and can accurately project cash flow.
It helps to provide several different payment options like credit cards or bank transfers. A 3S Money account also offers seamless integration with global online marketplaces, making it easier to collect and manage all payments in one place. If you're looking to expand internationally, another way customers can pay you easily is via local IBANs.
IBAN stands for International Bank Account Number. An IBAN is pretty much exactly what it sounds like – it's an identification code connected to your bank account. So, if the customer or local distributor you're working with has your IBAN, they can send you money directly.
3S Money offers EU IBANs as well as their UK and US equivalents (sort codes and routing numbers, respectively). With one of these, you essentially have a local bank account without going through the sometimes impossible hassle of setting one up! Not to mention paying the ongoing fees to maintain different local accounts.
We firmly believe you should have full access to any markets you want to sell in, regardless of your passport.
Navigate currency exchange
Foreign exchange can be a tricky area, and an easy place to lose money without the proper tools and knowledge. Managing FX risk is a whole topic in itself.
But let's look at a simple example:
Say you Google the currency exchange rate between pounds and euros. You see that £100 is equivalent to €110. This is the mid-market rate, where buyers and sellers are willing to meet.
You owe your supplier €5,000, so you do some quick maths based on the mid-market rate and figure out you need to pay £4,545. But when you send the payment, you notice that your supplier has received less than €5,000. This occurred because the bank has placed a markup on the mid-market rate.
If you're making frequent, high-value payments, just imagine how much money the bank is making off your transactions (and how much money you're losing). Bank challengers such as 3S Money will offer you significantly closer to the mid-market rate. Any payment you send will cost $1 – you're getting the mid-market rate, plus $1, and that's it.
With a 3S Money account, international payments will also be processed faster. In contrast to bank wire transfers – which can take days to process – you can expect 3S Money payments to arrive in just a few hours.
Simplify your cash management
Traditional wisdom tells us that opening business bank accounts in each country we sell in is the way to go.
But the truth is this really isn't ideal – and maybe you've already experienced this yourself. Why pay fees on each individual account when you could control everything through just one platform? A platform that lets you send and receive funds from over 190 countries, in more than 65 currencies, for much more favourable rates than a bank would?
A 3S Money International Business Account gives you everything you need to take your firm to the next level. Whether that's accessing new markets through local IBANs or making your international transactions more profitable by avoiding bank fees, we're here for you.
Keep better track of all your transactions
Having a clear picture of your finances is critical, as it can help you plan ahead.
Using a good accountant is vital for any business – just remember to include that expense in your cash flow forecast! Many accountants will now integrate directly with cloud accounting software such as Xero or Quickbooks.
Many challenger banks also offer accounting software integration as well as other custom tech solutions – APIs, for example – to enable easier and more streamlined transaction management. For international businesses, a 3S Money account helps you keep track of incoming and outgoing payments, as well as convert those amounts into your native currency.
Having as much of your cashflow as possible in one place makes managing your transactions, and making cashflow projections, simple.
Better access to support
Alternative banks are known for their speedy customer support, especially compared to the traditional banking dinosaurs who still use fax machines. At 3S Money, we take it a bit further – we provide our clients with personal managers who have expert knowledge in local banking. With a plethora of money management tips, they'll help your business navigate the rigours of overseas expansion.
Launch your global expansion with a 3S Money account
Are you looking to expand your firm across borders and maximise profits?
Look no further than 3S Money. Our global payments solution provides you access to over 190+ countries and more than 65+ currencies.
With great customer support, competitive FX rates and local IBANs, 3S Money offers the best business bank account for startups looking to expand overseas.