If you wish to deal with European companies or UK subsidiaries of
European companies on a regular basis, it is worth considering opening a euro
bank account . There are a number of potential benefits for your business from
opening this type of account:
It will facilitate trading with European companies. Most
European businesses expect to deal in euros and you may find yourself falling behind your competition if you do not have a euro
account
You will be able to apply for euro currency loans. These can be
particularly useful if you are anticipating receiving fund euros and want to
hedge against adverse changes in interest rates, your foreign exchange exposure
or your balance sheet. This sort of financial instrument can also be extremely
useful for purchasing assets abroad
By operating in one currency, you will avoid exchange
commission charges converting pounds into euros
The bank account statements will enable you to keep an accurate
track of your European trading
Most retail banks offer the chance to open a euro account, but
each is likely to offer a range of different services
Research your options
As with opening any
other business account, you should look around for the best deal on rates and
fees, and seek advice as to which provider has most experience in your
particular area. Do not ignore banks from other European countries: many of
them have the advantage of multilingual staff and valuable knowledge of
national markets and regulatory regimes which you can tap into as a
customer.
