Global Trade Account

Global Trade Account

The world is brimming with opportunities for businesses that can offer globalized situations. That’s why established as well as upcoming MSMEs like to build locally but think globally. But, MSMEs also need trusted banking partners to take care of all manners of cross-border transactions when it comes to trading globally. The answer to this critical business need is a Global Trade Account.

What is a Global Trade Account?

A Global Trade Account is a specialized current account offered by business banking solution providers. This type of account is designed to manage forex transactions and facilitate international trading. It also supports seamless order processing and payments for businesses that depend on regular import and export activities.

Even though MSMEs can continue doing international business with their existing current accounts, there are some clear advantages that a Global Trade Account can offer.

Benefits of Global Trade Account

The most significant benefit of Global Trade Accounts is that they are a one-stop solution, combining a wide range of products and services to provide a holistic trading experience. Every feature and service is designed keeping the niche requirements of MSME users in mind.

  • Lower Transaction Costs: With per-transaction costs competitively defined and categorized into export/import activities and inward/outward remittances, Global Trade Accounts offer complete visibility of net expenditure. The Quarterly Throughput (QTP) is also much more cost-effective than a standard current account, with the ease of digital transactions at no extra cost.
  • Export Specific Services: Certain export-related activities such as export bill collections, pre/post-shipment financing, review and confirmation of export Letters of Credit, and advance export requirements need specialized banking solutions. A standard current account can’t handle it effectively, but a Global Trade Account can.
  • Import Specific Services: Importing also comes with its own set of specific activities that require personalized support. Advance import bills and direct import payments can be easily managed with a Global Trade Account. Furthermore, it’s far easier to get Letters of Credit issues and arrange for buyer’s credit to support continuous business processes.
  • Higher Global Acceptability: A vast network of correspondent banks ensures higher acceptability of Letters of Credit and faster processing of documents. It also facilitates a smoother flow of funds, making it easier for MSMEs to execute faster receivable recovery through systematic payment follow-ups.
  • Personalized Advisory Services: A Global Trade Account typically comes with a relationship manager to offer timely advice on trade transaction processes and market movements of importance. Account users can benefit from these personalized services and plan their import-export activities accordingly.

Getting a Global Trade Account should be the inevitable next step for initiating or growing international trade for a business with so many benefits. 

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