01.07.2021: OFFSHORE CORPORATE BANKING
01.07.2021: OFFSHORE CORPORATE BANKING
The offshore corporate banking sector has constantly been under the spotlight, perceiving the industry to be a preferred choice for individuals and businesses who want to escape the tax. However, that is not the truth. There are numerous banking institutions that undergo rigorous screening to approve clients who are deemed to conduct banking legitimately. When done in a legal and transparent manner, and with the expert guidance of a financial adviser, opening a corporate bank account can give you several advantages along with core banking facilities.
Simply put, an overseas bank is one that is located physically in any jurisdiction other than the home country – an island, a country, or any crown dependency. First, let’s have a look into some of the major benefits of offshore banking:
• It is one of the best ways to diversify your risks and secure your wealth in an economy that is more stable, flourishing, and less prone to huge financial risks
• Ensures complete security and privacy of your wealth
• Get comprehensive corporate banking solutions with prompt support and an experienced team that monitors and invests your wealth smartly for profitable growth
• A long-term corporate account is a fantastic way to enjoy competitive rates of interest. Additionally, most offshore banks have a low minimum deposit requirement, which makes it easier to open and maintain an account. For example, SUISSE BANK – a leading offshore banking institution licensed in the Union of Comoros – requires only 25,000 EUR to activate a corporate bank account. However, the amount is not the minimum balance that you need to maintain. It is available for your business at any time
• Another advantage is that you can access your account anytime and from anywhere in the world. Many banks offer the option of remote banking via an app, telephone or website. This ensures complete convenience.
• Many offshore banks also offer professional guidance to help you with key investment decisions to ensure maximum profitability and growth of your wealth
So, now that you have understood how you can benefit from opening an offshore corporate account, let’s see what services you typically get with it.
1. Core Banking: With an offshore account, you can get a wide range of banking facilities such as deposits and withdrawals, fund transfers, term deposits, international debit and credit cards, business loans, etc.
2. International Payments: Corporate banking solutions, as in SUISSE BANK, provide the opportunity to conduct international payments. The bank allows transactions in 34 currencies, including EUR, USD and GBP. This means you can now easily transfer money and even conduct international trading easily with other countries such as UK, USA, etc.
3. International Trading: As an integral part of corporate banking services, many offshore banks provide cutting-edge financial instruments and service that aid in international trading. From trade financing to facilitating seamless, risk-free trading transactions, the banks will be your trusted partner at all stages. They offer a gamut of financial instruments such as promissory notes, letters of credit, warranties and proof of funds. This helps protect the interests of both the importer and exporter, ensuring the delivery of goods and payments as per the contract.
Here are some important offshore trading instruments you can get with a corporate bank account:
• Bank Guarantees: A bank guarantee is a written declaration by the financial institution, on behalf of the client, that if the client is unable to meet the obligations as mentioned in the contract, the bank will make the payment to the party in concern. It is a powerful tool because without a legally-binding guarantee from a credible banking institution, it might be difficult to trade internationally, particularly if you are making a new entry.
• Letters of Credit: Many offshore banks, such as SUISSE BANK, offer two types of letters of credit – Standby Letter of Credit (SBLC) and Documentary Letter of Credit (LC). By issuing a Standby Letter of Credit, the banking institution guarantees that even if the client (an importer) becomes insolvent, ceases operations or is unable to pay the exporter for any reason, the business terms and obligations will still be fulfilled as mentioned in the letter of credit.
A Documentary Letter of Credit is issued to safeguard the interests of the exporter, supplier or seller, guaranteeing assured payment by the bank in case the client (importer or buyer) is unable to pay for any reason thereof. However, the LC is applicable and the payment is initiated only on providing the required documents in a manner as mentioned in the letter of credit.
• Proof of Funds: A POF from the bank guarantees that you (investor) are financially stable and has the capital required for any investment. The objective is to secure large investment projects such as real estate or offshore trading.
4. Blockchain Banking: This is one of the most widely used corporate banking solutions that provide lucrative profit-making opportunities by investing in cryptocurrencies. With blockchain banking, you can trade in popular cryptos such as Bitcoin, Ethereum, Litecoin and others. The offshore banks provide an all-in-one wallet that you can use to buy, sell, deposit, store, transfer or convert any crypto into fiat money. The financial institution also serves as a crypto liquidity provider, offering a fantastic opportunity to generate maximum returns on your investments.
5. Investment and Wealth Management: When you open a corporate bank account with a reputable financial institution and in a booming economy, you can be assured of effective wealth and investment management. These institutions have a team of expert professionals who can guide you with the right advice on growing your wealth and making the right investment decisions. It is always important to seek expert guidance before you invest your money in any project that involves risk. They can help gauge the risks and improve your odds in making a profitable investment.
A corporate bank account is a great choice for businesses of all types – from large enterprises to small companies who want to secure their wealth and increase profitability in the long run. Make sure you choose your offshore banking partner smartly to enjoy comprehensive corporate banking solutions.