The quality and effectiveness of banking services, as well as conformity of the particular bank to the objectives proposed by the entrepreneur plays an important role in his commercial success in the growing competition and demanding business needs of today
Every entrepreneur therefore carefully considers all aspects when choosing the bank for opening of an account.
The decisive factors when opening a bank account may be divided into general and individual:
General or country-related factors
- Political stability of the country where the bank is located
- Overall banking legislation of this jurisdiction
- Time differences between the country where the bank is located and the country where the entrepreneur resides
Individual factors related to a particular bank
- Business reputation, image and brand of the bank
- Bank tariffs, especially for transfer fees for payments in main currencies.
- Possibility of opening of multicurrency accounts.
- Value date of both the regular and express payments.
- Availability of electronic means or internet banking for remote account management.
It should also be noted that banks choose their clients as well. An example of this may be where the bank may refuse to open an account unless a particular client meets the criteria of a certain target group of this financial institution.
Any bank seeks to have long-term business relations so it will prefer to have clients with stable, reliable and transparent business operations.
Prior to making a decision on possible cooperation with a particular client the bank will wish to examine a detailed description of his business which is usually sent to the bank in the form of a questionnaire.
The bank will wish to have the information about the anticipated account turnover, the names of particular business partners, information about which goods will be purchased in which countries, to what target groups they are planned to be sold, and in which jurisdictional direction the funds flows comprising receipts or payments for the goods will be made.
Where the business of the client described in the questionnaire is in general acceptable to the bank, the next step is to identify the client in person by a bank officer, or a representative of the introducing firm entitled to identify the client for a particular bank.
Companies engaged mainly in carrying on trading or commercial operations usually open accounts with banks in Cyprus and in the Baltic states as well as in other countries.
Companies engaged mainly in carrying on investment operations, usually prefer to be serviced in such recognised jurisdictions of investment banking as Luxembourg, Austria or Switzerland.
Lexon Incorporations will provide consultations in choosing the appropriate country for banking services, as well as in the execution of documents and the required forms for account opening with the bank chosen by the entrepreneur.