Today Bilderlings is going to discuss this seemingly well-known and easy-to-understand aspect of running a business, the settlement account. Indeed, this is a mandatory working tool for any business and a marker of prestige for an individual entrepreneur. But few people consider that, precisely for these reasons, it is important to select your settlement account, as with any product, based on the specific features and benefits it offers you, the consumer.
It isn’t necessary to explain what a settlement account is to experienced businessmen. But we’ll include a brief refresher for those just getting started in business. A settlement account is the account of a legal entity or an individual entrepreneur (enterprise) which is meant for receiving and keeping funds, as well as for executing all transactions related to the primary activity of the enterprise.
This is its main difference with the standard account belonging to, for example, a physical person. In addition, for a legal entity, the existence of such an account is a prerequisite for legal commercial activity, as Bilderlings described earlier in its blog.
For an individual enterprise aimed at the large-scale development of business, having an international settlement account number in their contact information brings a lot of benefits. On a basic level the existence of a settlement account has an important psychological role. It subconsciously raises the level of trust in the enterprise on the part of potential partners, clients, etc.
Disregarding state borders
On one hand, a settlement account, like the account of a physical person, enables direct and unrestricted access to funds. However, since this account is of a targeted nature, this determines some of its features. For example, it is under more vigilant supervision by supervisory institutions.
On the other hand, the functional features of a settlement account must be adjusted as much as possible, particularly for running a business. And, preferably, specifically for your business, with all its nuances. We won’t be paying much attention here to well-known transaction types, like transferring proceeds to a settlement account, including from acquiring operations, as well as transferring wages from it, paying taxes and many other operations. Let’s look at just two examples.
For a trading company that seeks to reach or has already reached the international level, the prospect of using a settlement account for dealing with, for example, commodities is very important. Since this word is quite fashionable today, but not everybody understands its true meaning, let’s talk about it in more detail.
A commodity (or commodities) are goods that are actively sold and bought at the world commodity exchanges: for example – grains, metals, oil and petroleum products, liquefied gas, fatty acids, vegetable oils, etc. Many of them can be considered transnational currencies to some extent. It’s no secret that sharp drops in oil prices have destroyed entire states and led to the overthrow of governments, and long-term hikes of the same prices have made tribal territories into world leaders.
At the same time, a trading company that is specialized in wholesale supply of coffee to retailers also works with “commodities.” In short, a “commodity” refers to goods that we regard as a monetary equivalent, disregarding its consumer properties.
No matter what aroma this particular brand of coffee has, its quoted prices are at this stage more important. And it’s this way from top to bottom – starting with the international commodity exchange all the way to a small private coffee shop. And only there, behind the bar, in the hands of the barista, will this coffee again become a consumer product, with its own unique aroma.
Therefore, a serious company, especially if it is aimed at operating at a large-scale with this sort of goods, needs not only the skills to make the deals, but also an international settlement account which allows transactions to be executed as quickly and efficiently as possible, without regard to national borders.
«Simpler than a bank»
It is also necessary to consider the advantage of using settlement accounts for the running of a dropshipping business. This is a fairly widespread business model today, where deliveries are carried out under a specific order from warehouses that do not belong directly to the trading company. These can be warehouses owned by the manufacturer or major dealer.
Some online stores operate following this model, but in a globalized world where logistics plays an increasingly important role, the principle of dropshipping is gradually becoming more and more used even in industry. It has its own pros and cons, which have been discussed in many articles. It is important to mention that one of the inevitable peculiarities of working under this model is the big increase in non-cash payments for small sums.
Moreover, these payments are both accepted from customers and sent to suppliers. Therefore, the fast-operating and highly functional settlement account, which allows you to work without regard to state borders, is a must-have tool.
In general, in the era of globally scalable business relationships, the functionality features of the settlement account services offered by a financial company are of primary importance.
For example, the functionality features of Bilderlings’ settlement accounts make it possible to call them full-fledged digital banks – though, in fact, they’re much simpler to interface with than a bank, and therefore more effective. Here is the list of what our customers get:
- Individual international IBAN number.
- Opportunity to execute international transactions in 32 currencies, including EUR and USD.
- Favourable tariffs for international business.
- Payment limits according to the type and specifics of business.
- Opportunity to work with cryptocurrency industry.
- Safekeeping of funds.
The account can be opened remotely and quickly, with a minimum of bureaucracy. Similarly, the identification of clients is accomplished remotely. This is why we don’t have queues for opening an account. In addition, we offer:
- Individual approach to each client, taking into account the specifics of their business.
- Safe and convenient access methods: Google Authenticator, SMS or email.
- Convenient, intuitive internet bank.
And finally, safety. Bilderlings is a British Fintech platform based on unique Latvian IT-technologies. These technologies make it possible for both legal entities and individuals to open settlement accounts in any country of the world, including the most-in-demand ones, free from limitations.