How to choose a bank to work in a foreign market
Today, a growing number of companies representing small and medium-sized businesses that are beginning to supply for export or import. When an entrepreneur begins to cooperate with foreign companies, he becomes a participant in foreign economic activity (FEA), and to work in this direction you need a partner bank, which will not only accompany the transaction, but also provide assistance on a number of issues.
The first thing an entrepreneur faces is opening an account in a foreign currency. Currency account consists of two parts: current and transit account. The first is to transfer money to counterparties; the second is for crediting receipts and passing currency control, you can withdraw money from it to the current account or exchange it for rubles. Banks are constantly striving to expand the list of currencies with which companies can work: dollars, euros, Belarusian rubles, francs, yuan, etc., so the type of currency usually depends on who you plan to trade with.
Today, representatives of business engaged in foreign economic activity have a number of problems, among which are the lack of understandable accounting, an insufficient level of expertise and competence, lack of knowledge of the language, and a new market that has not been fully studied. Because of all this, problems may arise when entering foreign markets, up to blocking accounts. Therefore, when choosing a bank to open a currency account, one should pay attention not only to the conversion fee, the cost of currency payments, but also to the readiness and speed of solving such problems by the bank.
The ability to quickly solve a problem is especially important when passing currency control. Currency control is a system of measures that regulate the circulation of foreign currency and the implementation of currency law requirements. All transactions with foreign companies pass through currency control. His goal is to confirm the legality of the transaction and the fulfillment of obligations between its participants. The oversight of currency control is conducted by the Central Bank, the Government, the Ministry of Finance and the Customs Service. Its direct implementation is carried out by banks with the authority of currency control agents who monitor the correct execution of the transaction and the fulfillment of its conditions. The entrepreneur is given 15 working days to provide information on the currency transaction. This period is counted from the day the money is received in the transit account.
The currency control procedure consists of several stages:
Preparation of transaction documents;
Setting a contract for accounting;
Registration of the transaction agreement;
Closing the transaction;
Since the whole procedure goes through the bank, it is especially important that the bank promptly participates in each stage of passing the control, helps to collect all the necessary documents, register contracts, form reports and advise the client. At a minimum, the information should come to the Internet bank, but the best way is to receive an SMS alert on the same day, because there may be many contracts, there are different deadlines and it is better to entrust them with tracking the bank. The cost of supporting a foreign exchange transaction depends on the tariffs of the bank.
For violation of the rules of conducting currency calculations, a businessman is fined up to the full amount of the illegal operation. Failure to comply with the established procedure for submitting forms for accounting and reporting on currency transactions provides for a fine of up to 50 thousand rubles. A company may suffer significantly if it does not ensure the fulfillment of obligations under the contract by a non-resident, that is, within the terms established by the contract, does not receive the goods / services for which an advance payment was made, or does not return an advance payment. The penalty for such non-compliance may reach the full amount of the currency transaction.
Therefore, all these terms must be provided at the stage of concluding a contract. If necessary, a bank employee should suggest how to correctly reflect a particular item in the contract. The bank informs clients about possible violations by sending information through available communication channels (Internet bank, SMS). It is especially important that the bank not only controls, but also suggests how to prevent violations.
In order for the Russian buyer to avoid unfavorable payment terms, for example, advance payments, and at the same time provide financing for the purchase of fixed assets, it is advisable to use a letter of credit with an installment plan. A letter of credit allows you to foresee and ensure compliance with such transaction parameters as the amount of payment, the time and place of delivery, a set of documents required by the buyer and the details of their execution, the distribution of costs. In essence, a letter of credit is the obligation of the bank to pay the seller upon providing them with the documents stipulated by the letter of credit. Having received an irrevocable letter of credit from the bank in its favor, the supplier can carry out the shipment without doubting the guaranteed and timely payment, the immutability of the terms of the transaction and its legal security.