Having an international bank as a small business can be very useful and convenient. This is especially true if you travel or conduct business outside
Having an international bank as a small business can be very useful and convenient. This is especially true if you travel or conduct business outside of the United States. That’s why for this blog post, we’re talking about international business banking and the importance of having an international business bank account. You’ll find out the top five international banks that you can explore for your business needs.
What is an International Bank?
An international bank is a financial institution that offers financial services across borders and currencies.
Some things you’d want to consider when looking for an international bank are:
- Whether or not they accept payments in foreign currencies and digital currencies such as crypto and bitcoin.
- The fees associated with transactions. Can you use your credit card without international transaction fees?
- Do they provide fully segregated bank accounts?
- Can you apply for business loans dominated by foreign currencies? This is helpful if you’re doing business or investing in another country and you want to get a loan in that country.
- How long do transfers take?
- What is the exchange rate?
- Good customer support
- Excellent and accessible app with full features when traveling.
International Banks to Consider
Here are some international banks that you may want to consider. This is not an exhaustive list, you can definitely check out other international banks. As a matter of fact, we encourage that. Just because one bank works for one business does not mean it is perfect for another.
1. Capital One 360
Capital One can be a great option for small business owners who need to conduct business abroad. One of their banking solutions, the Capital One 360 Checking Account, is perfect for entrepreneurs on the go.
A big pro is the lack of fees abroad. Capital One says, “For 360 products (360 Checking, Money, etc.) there are no additional fees when you use your debit card abroad (any transaction made in a foreign currency or that MasterCard® classifies as a cross-border transaction).”
Yes, that means you can withdraw money abroad from an ATM without a fee.
2. JP Morgan Chase
JB Morgan Chase is the largest bank in the United States with over 2 trillion in honest books. Its banking investment loan products help serve millions of Americans.
Chase Bank’s international wire transfer service can be expensive and slow in comparison with some of the alternatives. They do have a fixed fee of up to fifty dollars for international wire transfers.
In addition to that, they have exchange rates that can cost anywhere between four percent and seven percent.
If that’s a dealbreaker, there are some banks that they have zero percent or a lower percentage.
They also provide ATM access which can be crucial when you’re traveling and need cash.
Statrys says that this bank, “….offer[s] a suite of forex solutions that helps businesses navigate the complex nature of foreign exchanges. This is especially useful for businesses.”
3. Bank of America
Bank of America is another bank with a huge customer base. They have over 66 million customers across the globe.
Despite the rock-solid reputation and extensive scope of service, they may be a slow option to send money abroad.
In addition to that, they charge $45 for international wire transfers as well as a $5 to $7 exchange rate margin. There is also no free business checking account option.
On a positive side, they have a Zelle feature. However, we recommend you call and ask them if it will be available when you’re abroad.
You’re also able to open your business account completely online.
HSBC is one of the largest banks in the world serving 40 million customers in 64 countries worldwide with $2.9 trillion dollars in assets.
This financial institution provides business services such as financing loans and foreign exchange to over 2 million small medium-sized and Middle Market Enterprises. So whether you are a solopreneur partnership club Association Incorporated business or a publicly quoted company, HSBC will have a bank account for you.
What we like about this bank is that it has many types of business accounts to choose from. Some of the business accounts waive monthly fees for up to 12 months. In addition to that, they have an excellent app that you can access.
However, there are a few cons. For example, all accounts will eventually charge a monthly maintenance fee. In addition to that, there is no multi-user access or checkbooks for the HSBC kinetic account. Finally, the kinetic account does not have in-app international payments or foreign currency accounts.
Barclays may be ideal for some entrepreneurs.
According to Investopedia, this bank has:
- Competitive interest rates
- No monthly fee
- No minimum opening deposit requirements
- Good credit card rewards
However, on the other hand, they don’t have a physical location for you to go to, no checking accounts and you get personal loans by invitation only.
Make sure you do research before you pick an international bank for your small business. Meet with the bank’s representatives to ask questions as well as do research online.
Congratulations to everybody on your business this year. This is a year of financial freedom and while you may not be thinking banking is a big part of that, it definitely is. If you’re in business and you want to make money, build wealth and leave a legacy, banking is a big part of that.
Banking can help you start your business and to keep track of your finances. You’ll be able to monitor all the transactions that are coming in and out of business. In addition to that, having a business account makes you look more credible.
Financial institutions look at these things when you’re applying for loans, certifications, lines of credit, and grant opportunities.
Here are some banking resources that can help you get started:
- Banking for Small Business: 5 Important Tips for Small Business Owners
- 6 Tips for Choosing the Right Bank as a Small Business Owner
Good luck and don’t forget to share this blog with other small business owners.
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