If you’re thinking of opening a business and want to be able to buy or sell your products or services in the EU, it makes a huge difference if you have a EUR IBAN. If you’re starting a new business and wondering what having a EUR IBAN is all about - we’ll fill you in in this post.
What even is an IBAN?
First things first. IBAN stands for International Bank Account Number - and it usually consists of 22 numbers. It’s an internationally valid account number for sending and receiving payments in Euros. And why would you want to do that? Because the Euro is the most used currency in the world.
Currently, the euro (€) is the official currency of 19 out of 27 EU member countries which together constitute the Eurozone, officially called the euro area.
For many business owners, entrepreneurs and sole traders, not to mention digital nomads, breaking into the European market whether in a big or small, is a great idea for growth. It means that you’re not constantly losing money to currency exchange, have access to a stronger currency in many cases, and make it easier for your customers and suppliers to work with you.
If you’re actually opening a business in Europe from elsewhere you’rel definitely best off having a EUR IBAN in order to make and take your payments and money transfers.
EUR IBAN For Your Business
If you want to create a EUR IBAN for your business, there are two options. The first one is to open a business bank account through a traditional bank. The second way of obtaining a EUR IBAN for your business is opening a business account online. Let’s look at both ways.
Creating a EUR IBAN for your business through a traditional bank
Some business owners prefer to go with what they know. If this is you and you prefer getting your EUR IBAN for your business through opening an account with a traditional bank - that’s grea! It’s worth noting however that doing this will take up more of your time as traditional bank require more documentation, which means more paperwork and more time waiting. The first thing to do is pick your bank and open a business bank account. Once that’s been approved you should be able to create an EUR IBAN through your business bank account.
It’s best to make contact with a few banks initially to get an idea of what documents they require, how long the process might take and whether there is an initial deposit needed (always good to know!).
Option number two: Creating a EUR IBAN Online
It’s not only simpler and easier to open a business account online using a banking alternative platform - like wamo - it’s also easier to create a EUR IBAN for your business in this way. How do you do it? Most alternatives to traditional banks: digital-only banks like Revolut and Monzo and not-bank banking platforms like Wise and wamo, have been able to streamline the registration process down to minutes rather than weeks or months.
So does your business need a EUR IBAN? Why not, when it’s so easy? A EUR IBAN for your business increases your options, allowing you to do business from a distance as though you were local. This will save you money, help your business expand confidently into the European market and enable you to charge the amount your product or service deserves.
To open a wamo account and try out creating your first EUR IBAN, check out wamo.io.