Friday, March 31, 2023

Forex Payments from Business Current Account in the UK: 5 Things You Should Know

Forex Payments from Business Current Account in the UK: 5 Things You Should Know

A large number of businesses in the UK have international operations. Forex payments thus become necessary for such businesses. For enhanced convenience, there are now business current accounts that come with forex payment facility. Read this post to know more about such accounts.

According to a recent report, around 340,500 businesses in Great Britain trade internationally. This is almost 14.5% of the total registered businesses in the country. Businesses involved in cross-country trade often receive and send funds from and to foreign destinations.

For enhanced convenience, some of the business current accounts in the UK now come with forex remittance facility. The accounts eliminate the businesses from having multiple bank accounts for managing international transactions or using a 3rd party exchange service to send/receive payments.

If you are looking for one such forex business account, then here are 5 things you should know about them-

1. What is a Forex Payment Current Account?

A forex current account in the UK is similar to a basic current account but with additional facilities to send and receive funds in several foreign currencies. These accounts allow you to manage the cross-country financial needs of your business conveniently through online or offline banking.

The exchange of your UK funds to and from international currencies is done at highly competitive interest rates to help you get the best value for your money.

2. What are the Transfer Limits of Forex Current Accounts?

The transfer limits can vary between banks. However, some of the UK’s top banks offer daily transfer limits of up to the US $250,000. This should be adequate for most small to medium businesses.

However, you can further increase the limits after consultation with the bank. If you meet the eligibility requirements for a higher daily limit, then the bank can increase the transfer limit to accommodate your needs.

3. What are the Additional Services Offered by a Forex Current Account?

Apart from helping you send and receive funds to and from international destinations, the accounts also come with a host of other features to facilitate your business operations. For instance, some accounts come with trade services, including letters of credit, fixed deposit backed bank guarantees, import/export document collection, and more.

In other words, the forex current account can abundantly contribute towards your business growth and also keep your business finances highly flexible and accessible.

4. What are the Account and Service Charges?

Just as the transfer limits, the account and service charges also vary significantly between banks. Most banks generally have a monthly account maintenance fee. Apart from this, services such as international transfers, reference issuance, etc., attract additional charges.

Ensure that you thoroughly check all the charges and fees associated with the account before applying. Prefer a bank that charges a highly competitive fee and offers maximum facilities.

5. How to Open a Forex Current Account in the UK?

In most cases, if you already have a business account with the bank, then you can access their forex payment facility. However, if you want to open a new current account, then you can do so by submitting relevant documents, such as

  • Business identity proof
  • Authority for bank account
  • Business address proof
  • Identity proof
  • Financial documents

Submit these documents along with the duly filled account opening form to apply for a new forex current account in the UK.

Managing International Transactions with a Forex Current Account

A business current account with forex payment facility can add a lot of convenience to your business finances. Now that you know more about what these accounts are and the other services they offer, compare some of the UK’s top banks based on this knowledge to make the right selection.

You can always visit the bank to know more about the account and subscribe to additional facilities relevant to your business operations.

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