How to Open an IBAN Account

Banking with an IBAN account allows you to make secure international payments. If you have clients or suppliers based overseas, opening an IBAN account can be a simple way to streamline ongoing payments to these parties.

In this blog post, you’ll find out more about what purpose opening an IBAN account serves, how you could stand to benefit from opening one, and how to choose the right IBAN account for your needs.

Key takeaways:

• You’ll need to present documentation such as proof of ID and business registration to open an IBAN account
• Consider factors such as account fees, services, and compliance support when weighing up your options

How Do I Open an IBAN Account for Business?

To open an IBAN account for your business, you’ll need to find a provider. Many financial technology companies and online banks offer IBAN accounts, which help facilitate international transactions, so you can start your search online.

Some traditional banks offer IBAN account setup, too, which can be useful if you’d prefer to set up the account in person at a branch.

With an IBAN, you’ll make it easier to send funds around the world, which is a day-to-day necessity for many types of businesses.

What Documents are Needed to Open an IBAN?

In many cases, you’ll need to provide the following documents during the IBAN registration process:

• Personal identification: This will often be either a passport, national ID, or driver’s license
• Business documentation: Typically, you’ll be asked to present a certificate of incorporation and other proof that demonstrates your legal business status
• Proof of address: A utility bill, rental agreement, or bank statement showing your name and address
• Additional information: You may also need documentation that lays out the nature of your business activities or expected transaction volume

By gathering the necessary documents beforehand, you can speed up the application process.

Step-by-Step Application Process

1. Choose a provider - The first step in setting up an IBAN account is to find a provider. Start with an online search to see what your options are, and give weight to various factors like fees and features to help you make the best decision for your needs.
2. Submit your application - Once you’ve found an IBAN account that works for you, submit your application either through the website or in person if applicable.
3. Provide the relevant documentation - You may need to upload your documents if you go through the process online, or print them out if you choose to set up an IBAN account in person at a branch.
4. Wait for verification - The verification process can vary in length depending on the provider, and in some cases you may be asked to provide additional details or documents.
5. Account approval - Once your details have been verified, you should receive your IBAN details so you can start using your account.

Benefits of Having an IBAN

Setting up an IBAN account can be a good move for your business if you operate internationally, but there are other IBAN account benefits too.

Simplified Banking Operations

An IBAN account gives you a common thread tying international banking systems together, thereby affording you more secure transfers with less likelihood of errors.

Typically, using an IBAN for international transfers means you won’t have to worry so much about failed transactions due to the relationships with global partners.

Enhanced Financial Management

When you have an IBAN account for your business, it allows you to handle various processes seamlessly.

For example, you can:

• Easily accept payments from international clients
• Manage various currencies with a single account
• Track and reconcile your transactions with greater transparency

As a result of these features, you are less likely to encounter payment issues in the day-to-day running of the business, so you can spend your time on more important tasks.

How to Choose the Right IBAN Provider

Just like with any bank account, traditional or online, there are various factors you need to consider to find the right provider for an IBAN account.

• Evaluate Your Options

While traditional banks may make it easier to access some services, and can be more reliable with strong reputations built up over decades, online financial technology companies make the setup process and ongoing account management simpler.

• Understand the Fees and Services

With any IBAN account, there’ll likely be fees and various services you can benefit from.

You’ll have to pay transaction fees both for incoming and outgoing transfers, and currency exchange fees, which can add up in some cases.

As for services you can expect, here are a few examples:

• Multi-currency support - When working with overseas clients or suppliers, it helps to have an account that supports multiple currencies. That way, you can send, receive, and hold funds without converting every payment to cut down on fees.

• Online dashboards - These days, it’s not uncommon to have access to a digital dashboard for your IBAN account. You can use this dashboard to view your balances, track transactions in real time, and manage international payments in one place.

• Accounting software integration - A lot of providers offer direct integration with third-party software solutions such as accounting tools. You can use this integration to cut down on hours of manual reconciliation work, and make sure you stay on top of your numbers.

• Customer support - If you regularly transfer large sums of money, it may be in your best interests to find an IBAN account with a provider that offers responsive customer support.

The Easy Way to Save on International Transactions

If you need a cost-effective way to make and receive international transactions, the Wise Business account can be a great option.

With Wise Business, you get access to account details for multiple currencies, so you have an easy way to receive payments to IBAN numbers. That way, you don’t need separate bank accounts in each country you deal with.

Open a Wise Business account online

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to 140+ countries.