How much does it cost you to have multiple financial providers?

In the world of business, managing finances often means dealing with multiple financial providers or banking institutions. Sometimes, it's a necessity rather than a choice. When bills pile up, or you require additional lines of credit, you might turn to different financial institutions to manage your financial responsibilities. On a larger scale, global businesses may find themselves opening accounts in various countries to handle foreign currencies and international payrolls.

It’s crucial however, not to fall into the trap of opening multiple accounts or partnering with numerous finance providers. Having more than your essential financial provider can have detrimental effects on you and your business.

Here, we'll delve into the real hidden costs of maintaining multiple financial providers and explore a more efficient alternative with Fyorin, simplifying your banking experience.

A hidden cost that isn't so hidden when it comes to having multiple financial providers is the fees that come with them. Just one account or provider alone will have you rolling in the negatives if you aren't attentive to your financial situation from the start. Most banks will be upfront about their yearly fees when you sign up but there are a few other fees that they may fail to mention when you go to sign on the dotted line:

Monthly Maintenance Fee: These fees, ranging from single to double digits, can be waived by opening multiple accounts within the same institution. However, meeting minimum monetary requirements to avoid these fees can redirect your business funds away from essential needs.

Excessive Transaction Fee: Emergencies may necessitate large withdrawals from your savings account, incurring excessive transaction fees.

Overdraft Fee: With money constantly circulating in and out of your account, keeping track of what is and isn't in there can be a hard task all on its own. overdrawing from your bank account is an easy accident that can cost you big time in the long run.

Insufficient Fund Fee: Following that nasty overdraft fee comes an insufficient fund fee. If you accidentally forget to place overdraft protection on your account, you can then be penalized for overdrawing from your account and then for not having enough money in your account. Now imagine if you did this with multiple accounts. Chances are, your business would have a hard time recovering from all the fees that accumulated.

Bank Transfer Fee: If you wish to transfer money between your multiple business accounts or pay off the bills with your suppliers, the fastest way to do so is through a bank transfer. And just like with anything else, your bank is likely to charge you a fee. Over time, these fees add up and outweigh the ease that comes from using a bank transfer.

Maintaining multiple accounts and incurring these extra fees can quickly erode your finances. Avoid these fees by opting for a streamlined banking solution like Fyorin, whereby with one solution and one commercial model, you can seamlessly bank with multiple banks across a curated network of financial institutions, as if you are banking with one while being offered a tailored banking experience.

As briefly mentioned, most banks require a minimum amount of money to open a new account. Once the account is opened and all fees (that you’ve been made aware of) are paid for, you must then leave a certain amount of money in the account to be able to use it. Remove too much money and you will get fined and banned from accessing your account until dues are paid and the balance is restored. This is not only incredibly annoying to deal with but also not practical. Being penalized for using your own money is not something you should ever have to worry about, especially across multiple financial providers.

Keeping tabs on multiple accounts consumes valuable time and resources that your business may prefer to allocate elsewhere. Running a business is challenging enough, especially on a global scale. Balancing numerous accounts should not become an additional item on your to-do list. Complexity increases with each account added, potentially necessitating additional hires for management. Instead of investing time and money in managing multiple financial providers, consider an all-in-one account solution.

It's true that opening up multiple savings and spending accounts won't impact your credit score. However, if you are opening up a new line of credit then your score will tank faster than you may imagine. With every credit account comes a credit check and with every credit check comes a drastic drop in points that you may not be made aware of immediately. However, next time you try and open a line of credit or apply for a new loan to expand your business you may be unpleasantly surprised to hear that you can’t.

Juggling multiple accounts, monitoring minimum balances, and ensuring timely fee payments demand precious time and resources and take away from your revenue. Rather than paying someone to do this extra work or investing the time to do it yourself, consider partnering with companies that do the work for you under one account.

Fyorin offers multi-currency accounts and other financial products, such as corporate virtual cards and more across a curated network of financial institutions, tailored for your needs, under one log-in. This means that you never have to figure out which account works best for certain transactions. Solutions like Fyorin are great for global businesses where it allows financial teams to focus more on their core business and removes the banking complexity that comes along with operating cross-border. Close those fee-riddled accounts and partner with Fyorin today!