Optimizing Business Finance: The Comprehensive Guide to Multi-Currency Accounts and Forex Management with Revolut Business
In celebration of reaching 35 million customers, Revolut has launched Revolut 10 – an app update designed to enhance user experience. In October 2023, Revolut introduced Trading Pro across the EEA, a robust set of tools for advanced traders. Despite its consumer popularity, there must be more buzz about how Revolut’s Business Services is aiding CFOs and CEOs in business financial management. This next section examines how Revolut Business is carving its path in serving businesses, including FX, Forex, Payment and Expense management.
Multi-Currency Accounts and Forex Management
Examination of multi-currency account features, forex rates, and cost-effectiveness.
Revolut Business’s multi-currency account feature is a cornerstone of its service, designed for seamless and cost-effective currency management and transactions.
Multi-Currency Account Features:
Revolut Business facilitates foreign exchange in over 30 currencies, allowing users to receive, hold, and exchange money globally without hidden fees. This feature is apt for businesses with international operations as it supports multiple sub-accounts in different currencies under a single umbrella, simplifying treasury management.
- Multiple Sub-Accounts: Businesses can set up multiple sub-accounts in over 30 different currencies to manage their finances efficiently per geographic or operational requirements.
- Real-Time Exchange Rates: Revolut Business provides real-time, market-leading exchange rates, ensuring transparency and cost-effectiveness in foreign exchange transactions.
- FX Forwards: lock in exchange rates for up to 12 months, manage currency contracts online 24/7, and access up to £500K in forward contracts automatically, with transparent terms and a flat 0.8% fee.
Forex Rates and Cost-effectiveness
Revolut Business is reputed for offering competitive forex rates, pivotal for businesses dealing in multiple currencies.
- Interbank Exchange Rates: The platform offers exchange rates at interbank rates, which are generally some of the most favorable rates available in the market.
- No Hidden Fees: The transparency in forex rates and the absence of hidden fees make Revolut Business a cost-effective option for managing multi-currency transactions.
- Pricing Plans and Forex Allowances: Revolut Business offers multiple plans catering to different scales of business operations. Each plan comes with a specific allowance for foreign exchange at real exchange rates. For instance, under one of the pricing plans, businesses get a $10,000 allowance for foreign exchange transactions at real exchange rates.
Payment Solutions and Processing
Revolut Business offers various payment solutions and processing channels tailored to facilitate seamless financial transactions for businesses and freelancers. Here is an analysis of various payment channels and their efficiency:
- Multi-Currency Transactions: Revolut Business supports transactions in over 25 currencies, enabling businesses and freelancers to send, receive, hold, and exchange money seamlessly across borders.
- Foreign Exchange Services: The platform provides foreign exchange services at low exchange rates, using the ‘real exchange rate,’ which banks use when exchanging currencies amongst themselves. On weekdays, a small fee is added to some currencies, and if exchanges exceed £1,000 per month, a ‘fair usage’ fee of 1% (or 0.50% on paid plans) is applied. During weekends, an additional 1% fee is charged.
- Payment Links, QR Codes, and Online Checkout: Simple payment links, QR codes for touch-free transactions, and an online checkout system. The monthly allowance of free transactions on a free plan might not be sufficient for some businesses, necessitating an upgrade. Revolut has a faster payout time (next day), low currency conversion, and transaction fees compared to Stripe.
- Payment Service Provider: Revolut acts as a payment service provider, with the Revolut Business account serving as an online solution for business banking. In 2021, around 1.1 million people used the Revolut Business app daily. As of October 2023, Revolut claimed over 35 million customers.
Expense and Spend Management
Evaluation of expense management tools, virtual and physical cards.
With Revolut Business, businesses can easily keep track of their spending, reimburse employees, and manage company cards, both virtual and physical.
- Virtual and Physical Cards: Revolut Business provides access to up to 200 virtual and three plastic debit cards across all payment plans. These cards facilitate easy expense tracking and management, allowing businesses to issue individual cards to employees for business-related expenses. The cards can be managed via a dedicated mobile app, enabling real-time viewing of funds and transactions.
- Spend Management Features: Spend management system that simplifies expense tracking. The system is designed to manage expenses with features like the ability to quickly snap or email receipts using Revolut’s web and mobile apps. These receipts are then automatically categorized and matched to card transactions. The feature also allows the addition of labels, approvals, and provides full visibility of company spending, enabling businesses to track staff spending as it happens.
- Revolut Expenses Tool: Revolut introduced an expense management tool known as Revolut Expenses to give business customers a real-time view of their finances. This tool sends real-time spending notifications, sets limits on outgoings, and gives control over company cards. It is designed to help growing businesses remove the hassle of handling expenses by providing a streamlined platform for expense management.
- Advanced Treasury Management: Exploration of cash flow management, forward contracts, and cryptocurrency functionalities. Revolut Business offers an array of treasury management features tailored to meet the diverse needs of modern enterprises. The ability to manage multiple currencies, engage in forex transactions, and even venture into cryptocurrency realms presents a modern, digitized, and borderless financial management system.
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