Opinion
The Singaporean SME’s first step to going global: a guide to opening a business account for international trade
As a Singaporean entrepreneur, your business is primed for the world stage. But while your products and services are ready, is your bank account? For many small and medium-sized enterprises (SMEs), this fundamental piece is the one thing holding them back from profitable international growth. A recent survey by the Singapore Business Federation found that a significant 59% of businesses are planning to expand overseas, making your ambition part of a major national trend.
The problem with your local bank account
A standard traditional SGD business account isn’t built for a global economy. This leads to three core problems that quietly erode your profits. First, you face high, multi-layered fees for sending and receiving foreign currency. Second, the exchange rate is often far worse than the real market rate, a hidden cost that amounts to a substantial loss on every transaction. Lastly, international bank transfers can take days to clear, creating cash flow problems and delaying shipments.
The Financial Stability Board and the World Bank have highlighted that traditional cross-border payments are often slow, costly, and lack transparency, a major hurdle for SMEs. For a business transferring SGD$50,000 monthly, these hidden fees and poor exchange rates can add up to thousands of dollars in annual losses.
The foundation for global trade
The true first step before making your first global sale is opening a dedicated account designed for international business. Think of it as a single platform where you can hold and manage multiple currencies as if they were local funds. By opening a multi-currency business account, you are building the financial engine your business needs to operate globally. This type of account simplifies your operations, provides full transparency, and eliminates the hidden costs associated with traditional banking.
How this transforms your business operations
The top target markets for Singaporean SMEs expanding abroad are consistently the USA, China, and Europe. Let’s see how a specialized international business account changes the game when dealing with these key regions.
With a traditional local bank, your US client sends USD, which is converted to SGD at a poor rate, costing you money. With a dedicated account, your client sends USD directly into your USD account. You can hold the funds and convert them when the exchange rate is most favorable, maximizing your profits.
A multi-currency account allows you to pay global suppliers, including those on Chinese marketplaces like 1688 and TaoWorld, with competitive FX rates. This enables fast and secure payments to over 200 countries in more than 100 currencies. For European payments, you receive funds with minimal fees and near-instant settlement, freeing up capital and giving your business a competitive edge.
Wrap-up
For a Singaporean SME, global ambition is essential. But the right financial foundation is not just an administrative detail; it’s the strategic first step that makes profitable global trade possible. By setting up the right account, you can eliminate a major source of friction and loss, allowing you to focus on what you do best: growing your business. The world is waiting for your business. Make sure you’re ready to get paid.
