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Why New Business Owners Choose Digital Business Accounts

11.06.2020

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:

  • You don’t physically need to be in the jurisdiction: The process of opening a Global Account is completely virtual. You can submit all your information online, and our client service team will verify your identity through a video conference call.
  • Account opening is quick: At Currenxie, we review most applications within 48 hours, with account opening taking less than one week in some cases. This is due to our robust risk management and compliance programme being conducted in less time compared to most banks.
  • No endless paperwork: The list of required documents requested by banks to open a corporate account may seem endless. However, the only documents you will need to sign up for a Currenxie global business account are:

    • Business Registry Certificate or Certificate of Incorporation (or equivalents).
    • ID/Passport and proof of address of director signing up.
    • ID/Passport and proof of address of UBO holding >25% of shares.
  • Opening a Currenxie Global Account is free - Our pricing is fully transparent. Opening an account with Currenxie won’t cost a thing, and we don’t charge an account maintenance fee. We only charge small transactional fees.
  • We welcome businesses of all sizes: We encourage all types of business owners to apply for one of our virtual accounts, including online merchants, SMEs conducting cross-border trade, entrepreneurs looking to launch their next start-up, and marketplaces/platforms making international payments.

Scale your business globally and give your money permission to travel with the Currenxie Global Account. Click here to apply today

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