Euro business accounts

Sending money abroad can be expensive, so if you’re planning to expand your business to Europe or you already deal with European clients and suppliers, opening a euro business bank account could help you carry out foreign transactions for less.

What is a euro business account?

A euro business account is a business bank account designed to hold, send and receive payments in the Euro currency. It means you can send money to clients, companies and suppliers in Europe in their own currency.

This can be ideal if you regularly trade abroad as you won’t need to pay hefty foreign exchange fees each time.

Why might you want a euro business account?

Your business might need a euro business account if it regularly deals with clients in Europe or if you’re thinking about expanding your operations abroad.

Sending money to overseas accounts can often come with high conversion charges, but by opening a euro business account, your business can avoid these expensive fees and save money. Plus it’s far more convenient to stay in the same currency.

How does a euro business account work?

A euro business account usually comes with its own IBAN, so that payments can be made and received using a single account. You can receive, hold and send euros without needing to convert the funds into pounds sterling, helping you to avoid expensive transfer and currency exchange fees.

Some euro business bank accounts also come with a debit card that you can use in Europe without paying currency conversion fees and saving you even more money.

Many euro business bank accounts can be managed via an app or online, and you can usually track your spending and set budgets to help you stay on top of your finances.

How to get a euro business account

You can open a euro business account in much the same way as any other business account. Make sure you check the eligibility criteria first, however, as some business bank accounts will ask that your business has been trading for a minimum amount of time and/or has a minimum annual turnover.

Compare accounts carefully, looking at features such as:

• Monthly account fees
• Currency exchange fees (if any)
• Transaction fees
• Debit card fees
• Account management
• Number of permitted account holders

Once you’ve found an account you want to apply for, you can often do this online or via the provider’s app. You’ll need to provide some personal details and some information about your business, as well as a form of ID. Once this is verified, your account could be up and running the same day or within a few days, depending on the provider.

What type of business or person would need one?

You might get a euro business account if:

• You regularly send payments to clients, employees or suppliers in Europe
• You’re expanding your business to Europe
• You receive payments from customers in the Eurozone
• You receive payment for services in euros as a self-employed contractor
• You regularly visit Europe on business and want to spend and withdraw cash on your debit card fee-free

Pros and cons of euro business accounts

Bottom line

If your business regularly trades in Europe, it can make good financial sense to open a euro business account. Many of these accounts let you transfer funds overseas fee-free, and they often come with a debit card that you can use overseas too.

However, as with all financial products, be sure to compare your options carefully. Check whether you need to pay a monthly fee for the account and whether there are charges for other transactions. Also keep in mind that if you regularly transact in a range of currencies, a multi-currency business account might be more suitable.