The value of offshore business accounts

For many experienced industry leaders, setting up offshore companies is the norm. By doing so, such leaders are able to develop better platforms for the provision of services, for the protection of investments and for the development of more versatile business portfolios. When setting up an offshore company, it is also logical to set up offshore business accounts. However the set up of offshore business accounts is not limited to offshore companies, and many onshore companies also do this as part of the development of their business portfolios.

The value of offshore banking

If you conduct business internationally, you will require quick and efficient banking support wherever in the world your company is registered. Offshore banking services are particularly valuable to organizations that work internationally where the customer and supplier base is international and payments are made and received in multiple denominations. By setting up an offshore bank account, organizations like these are able to better structure their finances, and ensure that there is ease of movement of funds in order to fulfill its business obligations.

The key benefits of offshore banking are threefold – first that it is simple to do; second, that all offshore banking facilities guarantee confidentiality; and third, most offshore banking structures allow for serious savings in terms of tax.

If your business is internationally driven and you need to be able to access your organization’s funds easily in order to track revenue or pay suppliers worldwide, then having a local bank account may serve this purpose. However, when time is of essence, an offshore account is unbeatable in terms of support. Most offshore banking structures allow its business bank account holders instant access to banking information. This is central to your ability to conduct business effectively on an international platform.

There are a variety of account types for the offshore international business account holders and these include:

• Current accounts: Used daily for your business and similar to a normal current account.
• Demand deposit accounts: You are able to store larger sums of money here and simultaneously attract higher interest payments while at the same time having immediate access to funds should circumstances require.
• Term deposit accounts: Similar to the demand deposit accounts. You will, however, be required to structure your use of funds with some advance notice to the offshore banking provider.
• Foreign currency accounts: For monies coming in from abroad.
• Merchant accounts: To receive debit and credit card payments.
• Loan or mortgage accounts: For all your loans.

It is useful to remember that offshore banking facilities are driven not only to provide the most competitive rates that are available in order to attract international business account holders, but also to provide versatility in types of accounts and flexibility in customer usage.

If you are interested in opening an offshore business account, it is important to evaluate the country and the provider and also check where it would be possible to get the best rates, most flexibility and greatest tax rebates. The only catch may be that some offshore banks charge fairly high bank charges, but as with most businesses in life; this is open to negotiation, so negotiate!