Muloot explains: What is a multi-currency business account?

Join us for the first piece in our explainer series, as we unpack exactly what a multi-currency business bank account is, and why it’s essential for growing businesses looking to trade overseas.

So, what is a multi-currency business account?

A multi-currency business account usually functions in a similar way to a normal business account, except it enables you to make transactions in different currencies — so you can deposit, receive, send and hold several currencies in your account at the same time. Most reputable providers of multi-currency business accounts will offer a wide range of currencies, maximising the number of regions that you can conveniently trade in.

How do multi-currency business accounts work?

Multi-currency accounts give businesses the tools they need to manage multiple currencies in one account, allowing for quick and cost-efficient currency conversion, whenever you need.

The more advanced international business accounts are set up to show several “sub-accounts”, one for each of the different currencies you’re using. Every sub-account has its own balance, transaction history and list of scheduled payments, so you can manage each currency on a macro level.

The specific functionality, features and services these accounts offer will vary depending on the provider, but you can generally expect a useful online payments facility, where you can see your transactions, and view each currency side by side. Just like you’d expect with a regular bank account, most providers are also able to offer debit cards for your team.

Who needs a multi-currency business account?

There are many reasons why a company would benefit from opening a multi-currency business account — but here are a few of the most common users:

• A business that’s trading (or looking to trade) internationally
• Businesses with employees or freelancers working for them overseas
• Companies that work with a lot of international suppliers
• eCommerce businesses that sell goods online across multiple marketplaces
• Any company required to handle multiple currencies

As with standard business accounts, providers have their own criteria for approval, and also have the right to refuse applications from companies they deem unsuitable, or too high risk.

Thankfully, the Muloot team is made up of highly-experienced experts, who recognise the nuance in applications from businesses in complex or non-standard circumstances. That means we’re often able to grant approval for multi-currency business accounts on applications that other providers have denied.

Benefits of a multi-currency account for businesses

Multi-currency accounts can be a complete game changer for businesses trading internationally, who are getting bogged down in currency conversion processes. Here are some of the biggest benefits you can expect to enjoy:

• Minimise currency conversion charges.

  Fees quickly mount up for businesses frequently converting several different currencies, but with a multi-currency account, you can minimise the number of conversions needed (since you’ll have a pot of funds in the right currency already waiting) and access lower fees too.

• Only exchange currency when you want to.

  Convert as much currency as you need, and choose the optimal time to do so — this allows you to make the most of periods of exchange rate volatility, and convert when rates are at their most favourable.

• Pay suppliers or employees in their local currency.

  Choosing to pay international suppliers in their local currency streamlines the payment process, and ensures they receive exactly the right monetary amount.

• Access a range of other money management features.

  Many multi-currency accounts come with additional features like fixed FX rates for delivery on a required date in the future, an analytics dashboard to help you track activity, or the option to export custom statements as PDFs.

How to choose the right multi-currency account for your business

There’s a lot to consider when you’re deciding which multi-currency account is best suited to your business. For instance, some accounts only offer two or three currencies, but if you’re trading primarily in countries that are happy to use dollars, you can go with a provider like this. However, if you’re trading (or employing people) across many different countries and territories, you’ll need an international business account with a diverse currency catalogue to match.

Similarly, some businesses may struggle to get applications for multi-currency accounts approved, if anything about their setup is complex, or they’re working in a less regulated industry. This may also narrow down your choices, and if your business fits into this category, you’ll need to look into providers with the expertise needed to approve applications from companies in non-standard situations.

Lastly, it’s also worth looking at the online and app facilities offered by the providers you’re considering, as well as their reputation for customer relations. If convenience and support are paramount for your business, you’ll want to prioritise a provider that delivers excellent user experience, features that feel intuitive to use, and customer service that goes beyond a chatbot.

International business accounts with Muloot Money

We’re proud to have built a money management solution for businesses that’s fully integrated with FX services, and the advanced functionality that those require.

Our multi-currency business accounts will deliver access to 38 different currencies, all of which are visible side by side in your personal dashboard. On top of this, our team of expert advisors is on hand to support your business — via telephone, email and live chat.

Keen to learn more? If you’ve got a question about our services, don’t hesitate to get in touch with our team.