Many businesses never even consider the possibility of offshore accounts, and in most cases, it’s because they don’t understand how these accounts work or the benefits they offer. There’s also a misconception that such accounts are only for companies with excessive cash reserves.
However, these myths could be holding you back from making a savvy business decision. Here are a few important factors regarding offshore business accounts that could change your mind.
1. Dilution
As a business owner, you want to do everything you can to minimize risk. You’ve no doubt heard the saying about having all your eggs in one basket, and it can certainly apply to your business finances.
You don’t necessarily have to place all of your funds in offshore accounts, but diluting your risk by keeping money in several different types of accounts is wise, and offshore bank accounts can be part of that strategy. This is not only a smart financial move, but also a political one.
2. Asset Protection
One great reason to place money in domestic accounts is to gain Federal Deposit Insurance Corporation protections against loss. Unfortunately, these measures don’t protect your money from lawsuits.
Money held in offshore accounts is not necessarily beyond the reach of collectors, but it makes for a much harder target for seizure. You may become the victim of frivolous lawsuits or other financial attacks – offshore accounts can help you to stay afloat until such matters are resolved.
3. Minimum Deposits
Some offshore banking organizations do require minimum funds that smaller businesses will have trouble coming up with. However, this is not true in all cases, contrary to popular belief.
You’ll have to do some research to find the offshore banking institution that’s right for your company, but you can find banks that ask for deposits as low as $500-1,000 (USD) to open an account.
4. Remote Banking
The growth of online operations, including communications and security, has made remote banking not only possible, but relatively safe and reliable these days. As a result, you can open and manage your offshore accounts in a completely remote capacity, easily accessing funds that are held overseas. You can also hire a trusted management firm such as First Anguilla Trust to handle the day to day operations.
5. Fees = Guarantees
The major drawback of offshore banking for the uninitiated centers on the fees associated with many transactions. However, it’s important to understand the trade-off.
Offshore banks make their money not from lending, but from transactions and monthly fees. As a client, you’ll pay for services, but because your money is not lent out, it is always available, in full, when you need it. That’s a guarantee you won’t get from standard banks.
For more information regarding offshore accounts and banking, get in touch with us at 1-264-461-8800 or info@firstanguilla.com.