Finance is an integral part of any business. But for those of you deemed a medium or high-risk business, the banking process can become complicated and exhausting.
Risk-assessment hurdles, international transfers and complicated compliance requirements can be a struggle for businesses who fall into this category, particularly when dealing with traditional retail banks.
But what solutions are there to make banking a streamlined and less stressful process for these businesses? This blog delves into the common challenges of medium to high-risk businesses and the financial solutions available to them.
How Financial challenges faced by medium and high-risk businesses
Banking has a one-size-fits-all mentality
The financial challenges faced by medium to high-risk businesses are often due to the unique needs of these organisations. The banking industry is highly regulated which makes it strict and methodical, which can lead to a one-size-fits-all approach.
Traditional banking as a whole can be a challenge when faced with the individual needs of innovative businesses. It is rare for businesses to fall exactly into the tick-boxes presented to them by banks, and in sectors that are deemed high risk, this is even more prevalent.
International banking needs
International transactions are by their nature a confusing, complicated process. But when a company is carrying out business in locations deemed high risk, they are immediately thrown into the category of medium to high-risk business.
Companies working with Russia, CIS, Africa, LATAM and, most recently, contries in the Baltic countries have had the most considerable barriers with traditional banks. This can not only delay payments but can cause logistical nightmares for the businesses involved, particularly if a bank has little experience with these types of transactions.
Businesses left in the dark with compliance
Whatever compliance minefield is presented, businesses find themselves left alone to try to navigate documentation and banking regulations surrounding high-risk transactions and anti-money laundering measures, while also running their own businesses..
Without guidance, paperwork can be confusing, overwhelming and time-consuming, and there is an increased margin for error.
Financial solutions to these challenges
Choosing a personalised provider
One solution to the one-size-fits-all challenge is choosing a financial institution that understands the individual needs of medium to high-risk businesses. Breaking away from traditional banks and finding a provider offering this kind of personal service can give organisations a more seamless banking experience.
The provider should be concerned not only with each detail of the business but also the goals, unique challenges and the people behind the business. A business owner should be able to contact them with confidence that their banker knows the exact circumstances rather than being met with automated services.
Businesses should be able to trust their personal financial provider to know their risk and compliance needs.
Financial providers who are familiar with international markets
Some banking providers will be mainly involved in domestic or regional transactions with little experience or emphasis on global markets. International transaction challenges can be solved by choosing a provider who also operates globally..
Opting for a financial provider who understands the challenges that come with international business and who emphasise smooth transactional processes is a key financial solution to overcoming border barriers.
Ability To Handle Difficult Processes
Similarly, choosing a financial provider who can be authorized to handle certain transactions on the business’s behalf can enhance the seamless process.
Not only will this free up time to focus on actually doing business, but high-risk businesses can also be assured the provider can handle risk queries and knows how to navigate compliance without concern.
How PayPugs can help
Traditional and retail banks are at the root of many challenges faced by medium to high-risk businesses. Tricky obstacles are made worse by impersonal service and an unsupportive approach to medium and high risk business in general.
In response to this, online payment solutions such as PayPugs have changed the approach and offered financial solutions to these common challenges.
At PayPugs, we provide a personalised service unique to your needs, seamless international payment options and an understanding of multi-national markets and risk compliance. Get in touch with our team to find out how we can help your business.