Choosing a bank for your growing business is a very important decision that can have significant commercial and financial implications over a very long period of time. It is important to have an open mind and explore both conventional and unconventional strategies when comparing potential banking partners for your business.
Why Not Offshore?
Is your decision to restrict yourself to institutions located within your country helping or hindering your business? This is probably the first question that you should ask when approaching the question of choosing a bank for your business.
As a small business, you may have been most comfortable dealing with institutions and organizations set up in your country. However, what was good for you in the past may not be so in the future.
If you live in a country with restrictive laws and tight regulations on banking institutions, then you may suffer a significant disadvantage when taking on competitors located in foreign countries with more liberal rules.
While shifting your entire business abroad may not be practical move, you certainly have the option of opting for Labuan offshore banking services to take advantage of lower costs and better banking opportunities available elsewhere.
Comparing Cost and Value
Like any other business, banking to is a function of cost and value. A bank operating in a low-cost environment will automatically be in a position to transfer these benefits to its customers. It is important to note that costs can be financial as well as regulatory.
A bank set up in a country with a low tax rate but with numerous compliances and regulations may prove to be a very bad choice for your business. You may end up spending a lot of time and effort fulfilling rules and regulations that don’t really add value to your business.
When viewed from this perspective, choosing a Labuan offshore banking institution makes financial as well as commercial sense. Your choice can help you expand your business to a new market as you will have a financial intermediary located in a completely different country.
Further, the financial advantages of enjoying low-cost high-quality banking services can easily translate into operational efficiency, which will enable you to become even more aggressive in your business decisions.
All points considered, there is nothing to lose and everything to gain by adopting a flexible mindset when it comes to selecting a banking partner for your growing business. Considering the potential disruptions involved in switching over to our new banking partner, the smartest option would be to do this once and do this right.
