Knowing the basics of a USD account
Business accounts or corporate accounts are accounts dedicated to company-related financial transactions. They allow companies to keep track of their operational expenditure, revenue generated, money receivables and payables.
Most financial institutions in Singapore provide this service and more. Regular corporate accounts are used to transact in SGD; however, foreign currency accounts are required to trade in a particular foreign currency.
USD, CAD, EUR, GBP, AUD, NZD, and HKD are commonly used foreign currencies for business transactions in Singapore. However, in this article we will focus on USD accounts.
A USD business account permits companies to receive or settle payments in US Dollars. Companies having a global footprint can utilize this account to cut costs on international wires and foreign exchange, just like the local companies.
The economic burden of frequent currency conversions while buying business resources, and settling trades can be eliminated or significantly reduced. Plus, a USD account makes it possible for companies to hold the currency in USD and convert it to SGD whenever desired.
Signing up for a USD account in Singapore has never been easier. The business-friendly policies adopted by local and international financial institutions allow entrepreneurs to discover business accounts tailored to their needs and budgets.
Reaching this decision can be a cakewalk with adequate research and expert advice, which is why we have put together this guide to opening USD accounts for both new and established businesses in Singapore.
USD corporate account features
- Pay online or in-store globally in USD.
- Send/receive USD with no explicit charges for domestic transfers.
- Competitive forex rates for international payments in different currencies.
- Market exchange rates are shown upfront, so no worries about hidden charges.
- Access the account through Apple Pay/Google Wallet or physical/virtual cards issued.
- A unique business account number allows companies to invoice and accept local and international payments.
- Synchronize with accounting software to close the books really fast and get insights into the company’s financial management.
The promising features of this foreign currency corporate account are sure to make a business ponder on how to open USD account in Singapore.
Who can open a USD account?
Before learning how to open a USD account, know which are the valid entities to open USD bank account in Singapore.
- Incorporated companies of Singapore and their branch divisions.
- Representative offices of offshore companies engaging in business in Singapore.
The above types of businesses are eligible to open USD business account in Singapore. If your business falls under one of the two categories, follow the below-mentioned steps to open the account.
How to open a USD account in Singapore?
Select the best banking or financial institution for your business needs by comparing the benefits of USD accounts offered by various financial institutions in Singapore.
You will need to submit a duly filled and signed application form along with supporting documents, including but not limited to an incorporation certificate, business profile, identification documents, self-certification forms, and proof of business address to open USD account.
Contact the specific financial institution where you want to open USD bank account for the document checklist. Note that since the policies change regularly, the staff may request you to provide additional documents if needed. You are good to go once the financial institution gives an approval and issues an account number.
How to choose the best USD account?
Various institutions provide USD accounts in Singapore, so selecting the one with which you want to create a USD account is crucial. Before becoming a client, it is essential to check the below aspects carefully.
Some corporate accounts are tailored to suit the needs of new businesses or startups, and features are often designed to help them scale. Check for particular services that can boost your company’s prospects (based on type and size) before signing up.
1. Initial deposit
Initial deposit may be asked for during foreign currency account opening/activation procedure. Some institutions collect this amount as a part of the application fee, which can be non-refundable in case of an account opening failure.
This is not a mandatory requirement. The payment service providers may or may not demand the account openers to make an initial deposit.
2. Monthly minimum balance
Some institutions may require you to maintain a monthly minimum balance, usually $1,000 in USD, while some others, like Aspire, do not require any such monthly average balance.
3. Account maintenance fee
Depending on the banking institution, the foreign currency bank account can be levied account usage and maintenance charges. While some service providers recover monthly account-keeping costs, others may also charge for account transfers.
4.Banking fee
Every USD account opener should know about the fees related to basic banking services before taking a plunge.
- Fall below fee (the amount charged when the account doesn’t meet minimum balance requirements).
- Card service fee.
- Cheque service fee.
- Net banking fee.
- International remittance fee.
- GIRO transaction fee.
5.Net banking
Most financial institutions in Singapore provide net banking services to USD account holders. Language should not be an issue because English is recognized as one of the official languages of Singapore and is used in online banking portals. The user-friendly interface encourages businesses to use their corporate accounts well.
6. Ability to open accounts online vs Physical presence.
Disclosing vital information relating to the enterprise is mandatory while opening a USD business account. The details of the owner or parent entity, board of directors, and much more are to be given to the financial institution.
The people involved may need to travel to Singapore if they are not already living there for an interview process scheduled by the particular financial institution. In contrast, some payment service providers allow businesses to quickly open accounts online eliminating the need for physical presence.
7. Added perks
Many banks issue international debit cards, credit cards, and cheque books as benefits for opening a USD corporate account with the institutions.
Why is a USD account critical to businesses?
A USD balance proves beneficial for business owners as it allows them to conveniently cover various expenses such as travel, foreign invoices, and online purchases from US-based merchants.
Having this account makes the process smoother for business owners with clients who make payments in US dollars. Clients can directly transfer funds into the company’s account, eliminating the need for currency conversion or foreign exchange rates.
Also, a USD account allows the companies to have funds ready when they need them. They can use the money for business transactions or convert it to SGD for favorable exchange rates. It provides much-needed flexibility when businesses need cash to transact.
Companies can easily diversify their portfolio by trading in many currencies. USD assets will give them a business edge over competitors who may not have taken that route yet.
Not only will the companies make significant savings during repeated transactions, but trading in the same currency will permit them to monitor and analyze their performance with a minor hassle.
In essence, companies can easily request, receive, hold, and send USD payments. Additionally, this approach helps reduce additional expenses and simplifies the management of funds across different currencies.
If you opt to open your USD account with Aspire, you can also:
- Streamline various revenue channels by vendors or use cases.
- Create/send/manage invoices through automatic payment reminders.
- Customize and provide multiple payment links to enable faster payments at lower service charges.
- View paid/unpaid receivables and get insights into payment patterns.
- Glance at the real-time centralized dashboard for an overview of business transactions.
Conclusion
If your business transacts in USD or has payments and receipts that are made in USD, then having a USD account is extremely efficient and can save your business a lot of time and money.
We hope that this article has helped you gain a better understanding about a USD account and things that you must consider before choosing one for your business. Remember, every USD corporate account has its own unique set of features, charges and eligibility criterias which may vary from time to time.
If you are considering opening a USD account for your business, you can do so with Aspire in no time! Enjoy free local USD transactions and international transactions at surprisingly low rates. Seamlessly integrate the Aspire account with your accounting software for valuable data and insights into your business’ financial management.
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