All businesses need a corporate bank account in order to receive payments from customers; make payments to suppliers and track their finances. For online businesses it can be challenging to find a bank willing to take you on as a new client. Online businesses that often encounter difficulty when applying for a business account include gaming companies; online affiliate companies and ecommerce businesses in general. Although the process may be complex it is possible for online companies to find banks willing to offer them a business account. Bear in mind that requirements and policies differ from bank to bank and the process can be frustrating.

 

Apply here for a Business Bank Account in Europe

 

Which business account is best?

The most important features of your business model can have a strong influence on what services the bank you choose must offer. Firstly, the spread of activities makes a huge difference. If you are dealing only with people and other businesses resident inside a single country, or in the case of the EU, inside the Euro bloc, then currencies are not a concern. In simple terms, the best business account should be offering most if not all of the following features:

 

  • Charges minimum or preferably no service fees, at least for a starting period of 12-18 months
  • Allows for linkages between accounts, so that deposit accounts can automatically be used to offset short-term overdrafts without invoking penalty rates
  • Does not impose limits on transaction volume
  • Gives full access to all aspects of the account at branches, online through mobile and computer apps, and ATMs

What makes a good business bank account?

The things to consider when deciding what makes a good business bank account must start with the essential banking services you need to conduct every aspect of your business. This should cover the full range of transactions with customers, dealings with suppliers, payrolls, and accounting properly for all movements. Check also that the chosen bank can offer movement and accounting in all the possible currencies from international sources. If your business involves accepting credit card payments make sure you get full merchant services. As the business grows, when cash-flow management becomes an important strategy, the right bank account can help by allowing you to get paid faster, and holding onto cash longer. The right bank account  can help you get more out of your business!

How many business bank accounts should I have?

The decision of how many accounts, or even whether you should have multiple accounts, requires a balance between the pros and cons. On the plus side, multiple accounts help you to keep organized, by using the different bank accounts to serve various business needs. E.G. one account can handle incoming funds from customers, another to track routine business expenses, and a third to handle business credit card payments. Separate accounts like these can give you a clear picture of where you  stand in terms of day-to-day business as well as your long term goals.

Over time, you may need additional financing and having a proven track record of managing your finances responsibly can help. Most lenders require disclosure of detailed records of your finances, so a full picture of healthy account management helps to establish your creditworthiness.

If you have business credit card or debit card accounts, separating all tracking off into discrete accounts will keep them secure.

On the other hand, the disadvantages are that multiple accounts require more management effort. You or someone in management must pay close attention to them all. If supervision becomes lax, there is risk of one or more accounts slipping into overdraft, where charges can be expensive. Although not every bank will do this, some may levy individual account fees on each one, rather than a ‘universal’ fee for the whole company. This is something that should be clarified when choosing the bank.

 

Which is the easiest bank to open a business account?

Setting up a corporate account in a bank can be a complex process especially if you reside in a different country. Each country can have different and difficult procedures. The simplest approach, when choosing which is the easiest bank to open a business account in European countries, is to consider setting up a multi-currency business bank account with one of the many new EMI and Fintech services. Look for an account that enables multi-currency balances, fund transfers, IBAN account identification and making payments internationally. When standard banking services are offered, this makes the process of trading within European countries much simpler.

Another thing worth considering is to engage with a reputable agent to handle the set-up process.

With our knowledge and experience here at GBO, we have helped many customers navigate through the complexities of finding a suitable bank, ensuring that you can operate simply and effectively.

Easiest countries to open a bank account

There are some important features to check when you are looking to find the easiest country to open a bank account. Many countries only facilitate opening new accounts online to citizens or residents, and require special conditions for others. This makes a bank in the EU a particularly good option for the 550+ million people living there. You will automatically be able, as a resident, to open a new account online, giving you the option to open a bank account – personal and even a business – in any European Union country. This is a great feature for people looking to pay bills, transfer money or receive payments in Europe. 

As an EU resident, the way to find the easiest European country to open a bank account is to look for the ones that already have the best accessibility in terms of overall on-line banking facilities. Probably the most important thing to look for is the general quality of network service, where high-speed connection is essential, backed up by 24/7/365 support. Of increasing importance is the quality of the bank’s mobile service, in terms of the range of features offered, the extent of network coverage, and the quality of the mobile applications.

 

There generally is no difference inside the EU when you are looking to find the easiest countries to open a bank account. Banks cannot refuse to open a basic payment account for residents in any EU country regardless of where the bank is registered. This does not apply to other types of bank accounts, such as savings accounts, or if you already have a similar account with another bank in the same country. Such an account offers standard features such as making deposits, withdrawing cash and receiving and carrying out payments like direct debits and card purchases. Finding a bank that offers an overdraft or credit facility is a good plus.

 

There are many different aspects that need to be investigated if you are looking to find the easiest country to open a business bank account in Europe. In the first case, there are three different types of banking entities: traditional banks, digital banks offering EMI and Fintech services that don’t have banking licenses, and licensed EMI/Fintech operators. One essential feature that differentiates between banks when it comes to choosing for a business account is whether the bank offers the full range of features, especially IBAN account identification, particularly focusing on whether sub-IBAN account identification is allowed. This feature simplifies money management for businesses tremendously.

Points to Consider when Choosing an International Corporate Bank Account

  • What currencies can the account hold and transfer?
  • Can the account be used to send and receive transfers to the jurisdictions where your customers and suppliers are located?
  • What are the fees and charges that apply for the businesses account?
  • With your chosen account what level of customer service will be available to you?
  •  Can you access your corporate bank account remotely – is there mobile banking?
  • Can you have multiple signing rights for your chosen account?
  • Does the business account come with cards you can use to pay suppliers or employees?

The best features of EMIs

One of the best features being offered by some of the more advanced EMI financial services companies is to create a “virtual business bank account”, where the actual home country of the bank doesn’t affect how transactions happen. Multiple currency accounts and transparent money movement happens regardless of the incoming or outgoing currency or source, as if you have a local bank account in each case. This makes management of even the most complex business model much simpler. Here at GBO, we have worked with several of these advanced service providers and can help you find the most suitable home for your business.

Choose Your Business Bank Account Well

What can your bank do for you and what services and financial products are vital for your business? Decide on the must-have banking services you need and check that your chosen bank can supply you with these services; for example, will you be able to receive payments from the jurisdictions where your clients are located; will you need currency conversion, debit cards, multiple signature rights etc. You will need to pay some of your suppliers online or you may need an account where multiple company employees can make transfers. Do you need an account that can receive multiple currencies from international clients? What kind of business account will you need and does your chosen bank give you options? Before beginning the application process decide what you want from your bank.

Processes Involved in Applying and Opening an International Business Bank Account

Among the many documents you will be required to produce to open an international business bank account:

  • Articles of Association
  • List of shareholder and their details
  • List of directors and their details
  • Certificate of company registration
  • You may also need a business plan; details of your management staff and financial reports as well as any other document the bank sees fit to ask for.
  • Banks may ask you who your main customers and suppliers are; their locations; your monthly turnover; main currencies you intend to bank; physical street address of your company etc.

It is important to find out what documents your bank requires for the onboarding process so that you don’t waste time and a trip to the bank just to discover you are missing one vital document. Ask exactly what the bank requires as each bank has its own policies and requirements for new business accounts.

Opening an International Corporate Bank Account – Challenges, Options and Solutions

Opening a business account is different to opening a personal account; starting from the onboarding process which is more complex and requires that you produce more documents. Opening an international business bank account is also very different from opening a local business account. Choose the bank that can supply you with all the services and financial products your company needs now and in the future. Find out in detail what documents are required for onboarding. Prepare your documents thoroughly before you apply for your new international online business account. If you want advice on choosing the best international corporate bank account for your business feel free to contact us.

What Do I Need to Open a Business Bank Account?

Each bank has its own policies and requirements for new business accounts. Ask exactly what
the bank requires as the first step in the process. Generally, among the many documents you
need to open a business bank account are:

    1. Articles of Association
    2. List of shareholder and their details
    3. List of directors and their details
    4. Certificate of company registration

You may also need a business plan, with details of your management, staff and reports of any
pre-existing trading and banking. If it is a new business with no trading history, the bank may
require more information and documentation about the shareholders and senior executives,
and details of their personal bank accounts and other business holdings. In general, the bank
may see fit to ask for any other documents considered relevant.

For existing businesses, the bank may require details of customers and suppliers, historical
turnover, main currencies you intend to bank and the location of the company’s operations.
Corporate bank account requirements are very different from opening a private account.
Choose the bank that can supply you with all the services and financial products your company
needs now and in the future, with a clear cost structure than will not escalate as the volume of
transactions grows.

Many banks offer “sweet” deals with low charges in the beginning to entice
new business, but once the period of grace expires, the level of fees and charges can be
inordinately high.

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