If your business works across borders, a standard business bank account can start to feel limiting. Different currencies, extra fees and slow transfers all add friction.
A multi-currency business account is designed to handle money in more than one currency, without everything being converted back and forth.
This guide explains how they work, when they’re useful and what to look out for.
What's a multi-currency business account
A multi-currency business account lets you hold, send and receive money in different currencies from one place.
Instead of converting payments straight into pounds, you can keep balances in currencies like euros or dollars and move money when the timing suits you.
That can mean lower fees and better control over exchange rates.
How businesses use them day to day
Multi currency accounts are common for businesses that:
- Get paid by overseas customers
- Pay suppliers in other countries
- Work with international platforms or marketplaces
- Have teams or contractors based abroad
They’re especially useful if money moves in and out in different currencies on a regular basis.
Benefits of using a multi-currency account
Lower conversion costs
Frequent currency conversion can be expensive. Holding money in the original currency can reduce fees over time.
Faster payments
International transfers often move more quickly when they stay within the same currency.
Clearer cash flow
You can see exactly what you’re earning and spending in each currency, rather than relying on converted figures.
A smoother experience for customers
Getting paid in local currency can make it easier for international customers and reduce payment friction.
Things to check before opening one
Not all multi currency accounts work the same way.
It’s worth checking:
- Which currencies are supported
- How exchange rates are set
- Fees for holding, sending or converting money
- Whether you get local account details for different countries
Some accounts are flexible and app based. Others work more like traditional banking with added currency features.
Tax and accounting considerations
Holding money in different currencies can affect how you report income and expenses.
You’ll usually need to:
- Record amounts in pounds for tax purposes
- Track exchange rate differences
- Keep clear records of conversions
Most accounting software can handle this, but it’s worth checking how your setup works.
Is a multi-currency account right for you?
If most of your customers and costs are in the UK, you may not need one. But if you’re regularly dealing in other currencies, it can save time and money.
As with most banking choices, the right option is the one that fits how your business actually operates.
A good multi-currency account stays out of the way. It lets you work internationally without making every payment feel like a problem to solve.
