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The Benefits of Having an Offshore Bank Account for Business Purposes

Aug 22, 2008
There are many benefits to having an offshore bank account, especially if you travel a lot for business. Many businesses utilize offshore bank accounts because placing their money within another economy can have some tax advantages. It also allows a business to have money in a different location in case they need it for a specific reason. Otherwise, they are able to have money housed somewhere else where it cannot be touched by anyone that doesn't have the authority to touch it. Security is tight when it comes to offshore bank accounts, so many businesses and individuals are able to enjoy the benefits of knowing their money is safe. Because businesses trust their money in offshore accounts, it does not hurt for you to do the same because you never know when and how you'll need to access that money.

In terms of business travel, it is very beneficial if you have offshore bank accounts in the countries that you frequent. If there are certain cities that you frequent, then banks in those cities are going to prove even more beneficial for you. That means you'll have money at your disposal in case you need it. You just never know when something is going to happen that you need to access your funds quickly.

Things do happen

Let's just say that you travel frequently to Geneva, Switzerland. You may want to consider opening an offshore bank account in Geneva because the money will be there in case you need it. You just never know when something such as a credit card is not going to work or ends up being lost. Loose things such as cash and credit cards can easily disappear and you do not want to be in a situation in which you have to call your business to wire you money because you're stuck. Then there is always the fact that your company may not be able to bail you out. You don't want to have to call family members or friends to send you large sums of money to get you through the rest of your business trip.

By having an offshore account in the countries and even the cities you visit means you're going to be able to walk into the bank, show ID, and have immediate access to your money. That means the only thing you're going to have to do is report your credit card lost. If you've lost cash, you're going to feel terrible, but you'll know to be a bit more careful with the cash that you have withdrawn from your offshore bank account. It's just good to know that it is there when you need it. Had you not thought of opening an offshore bank account in the cities and countries that you frequent, you would have been in a bad situation. It never hurts to be prepared.

Opening the account

Depending on which countries you frequent is going to determine where you open the accounts. Many offshore banks have online applications that you fill out. You then fax them a copy of your ID and an existing bank statement. They may require additional information, but that is going to depend on the type of account you're opening and the bank you are opening it with. Each bank has different requirements, so it is good to see what those requirements are prior to opening your account. You want to make sure you can provide everything they need in a timely fashion. Once everything is provided, you simply arrange a wire transfer to the new account and you are finished. You are then on your way to having secured money that is available when you need it.
About the Author
Financial Services Firm offering offshore investments with offices in Bermuda, the Bahamas, Grand Cayman and London. For your offshore account needs, consider The LOM Group.
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