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 Keep Business Working Capital in USD?

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TSiammyself
post Oct 23 2021, 06:45 PM, updated 3y ago

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In my small business, most of my revenue and expenses happen in USD.

Currently, the cash flows from Revenue (USD) -> Local Bank Account (MYR) -> Expense (USD)

I'm losing like 5% from currency conversion and credit card transaction fees.

So I'm thinking to hold the revenue in USD and use that as working capital:-

Revenue (USD) -> X (USD) -> Expenses (USD)

PayPal won't work I think, because not everyone accepts it and the fees are quite steep.

Anyone has any experience in this area?
MUM
post Oct 23 2021, 09:05 PM

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try read on this,...hopefully it can gives you what you want...
keep your business income in USD

"Banking in the currency of your choice. MFCA allows you to receive and make payments in foreign currencies without needing to convert to and from your MYR account."

"Receive and make payments in the currency of your choice. We have all the major currencies such as US Dollar, Pound, Euro, Australian Dollar and more.

https://www.maybank2u.com.my/maybank2u/mala...cy_account.page?

Reduce foreign exchange risk by making your business transaction using the currencies of your choice. "

SUSxander83
post Oct 23 2021, 09:07 PM

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QUOTE(iammyself @ Oct 23 2021, 06:45 PM)
In my small business, most of my revenue and expenses happen in USD.

Currently, the cash flows from Revenue (USD) -> Local Bank Account (MYR) -> Expense (USD)

I'm losing like 5% from currency conversion and credit card transaction fees.

So I'm thinking to hold the revenue in USD and use that as working capital:-

Revenue (USD) -> X (USD) -> Expenses (USD)

PayPal won't work I think, because not everyone accepts it and the fees are quite steep.

Anyone has any experience in this area?
*
In the 1st place from day 1 of your business all revenue should have been kept in USD because you doing triple conversion you will lose a lot

Since you are expenses in USD, you should only withdraw lump sum for emergency or whenever RM depreciating which happens a few months back

Try Business Wise as you should get favourable rate for it. Not sure Square fits your requirements and many other fintechs around for your business’s
SUSxander83
post Oct 23 2021, 09:11 PM

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QUOTE(MUM @ Oct 23 2021, 09:05 PM)
try read on this,...hopefully it can gives you what you want...
keep your business income in USD

"Banking in the currency of your choice. MFCA allows you to receive and make payments in foreign currencies without needing to convert to and from your MYR account."

"Receive and make payments in the currency of your choice. We have all the major currencies such as US Dollar, Pound, Euro, Australian Dollar and more.

https://www.maybank2u.com.my/maybank2u/mala...cy_account.page?

Reduce foreign exchange risk by making your business transaction using the currencies of your choice. "
*
Worse choice of all because you need minimum USD1000 to open the account doh.gif

You be better using HLB or HSBC as it is free to open multi currency account
MUM
post Oct 23 2021, 09:30 PM

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QUOTE(xander83 @ Oct 23 2021, 09:11 PM)
Worse choice of all because you need minimum USD1000 to open the account  doh.gif

You be better using HLB or HSBC as it is free to open multi currency account
*
worst choice or NOT does not matters...as long as it can solve what he seek to want.
now you mentioned 2 more choices...good for him

btw, he does NOT ask for BEST choice in his 1 post... doh.gif

This post has been edited by MUM: Oct 23 2021, 09:31 PM
TSiammyself
post Oct 23 2021, 09:50 PM

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QUOTE(MUM @ Oct 23 2021, 09:30 PM)
worst choice or NOT does not matters...as long as it can solve what he seek to want.
now you mentioned 2 more choices...good for him

btw, he does NOT ask for BEST choice in his 1 post... doh.gif
*
Yes, I'm definitely looking for more ideas.
TSiammyself
post Oct 23 2021, 09:50 PM

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QUOTE(MUM @ Oct 23 2021, 09:05 PM)
try read on this,...hopefully it can gives you what you want...
keep your business income in USD

"Banking in the currency of your choice. MFCA allows you to receive and make payments in foreign currencies without needing to convert to and from your MYR account."

"Receive and make payments in the currency of your choice. We have all the major currencies such as US Dollar, Pound, Euro, Australian Dollar and more.

https://www.maybank2u.com.my/maybank2u/mala...cy_account.page?

Reduce foreign exchange risk by making your business transaction using the currencies of your choice. "
*
You even included a link for me. So thoughtful of you. Thanks, ermm... MUM.
TSiammyself
post Oct 23 2021, 10:03 PM

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QUOTE(xander83 @ Oct 23 2021, 09:07 PM)
In the 1st place from day 1 of your business all revenue should have been  kept in USD because you doing triple conversion you will lose a lot

Since you are expenses in USD, you should only withdraw lump sum for emergency or whenever RM depreciating which happens a few months back

Try Business Wise as you should get favourable rate for it. Not sure Square fits your requirements and many other fintechs around for your business’s
*
Thanks for the pointers.

Wise is definitely on my radar. I should also explore other fintech like you said.

I didn't do that in the first place mainly because there was hardly any revenue or expense. My attention was better spent elsewhere. For example, 5% of USD 1000 is just $50, that's not worth optimizing.
SUSxander83
post Oct 24 2021, 01:18 AM

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QUOTE(iammyself @ Oct 23 2021, 10:03 PM)
Thanks for the pointers.

Wise is definitely on my radar. I should also explore other fintech like you said.

I didn't do that in the first place mainly because there was hardly any revenue or expense. My attention was better spent elsewhere. For example, 5% of USD 1000 is just $50, that's not worth optimizing.
*
Are your business online atm? You should also consider to team up with BNPL providers as they can help on you on it

Even 5% is a lot after added up plus compounding and instead of keeping actual USD you might want consider buying USD treasuries with USD
Ramjade
post Oct 24 2021, 09:04 AM

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QUOTE(iammyself @ Oct 23 2021, 06:45 PM)
In my small business, most of my revenue and expenses happen in USD.

Currently, the cash flows from Revenue (USD) -> Local Bank Account (MYR) -> Expense (USD)

I'm losing like 5% from currency conversion and credit card transaction fees.

So I'm thinking to hold the revenue in USD and use that as working capital:-

Revenue (USD) -> X (USD) -> Expenses (USD)

PayPal won't work I think, because not everyone accepts it and the fees are quite steep.

Anyone has any experience in this area?
*
Do you have US bank account?
SUSyklooi
post Oct 24 2021, 10:04 AM

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QUOTE(Ramjade @ Oct 24 2021, 09:04 AM)
Do you have US bank account?
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Reading the way the posted in post 1, I am 99.9% confident that he does not hv a US bank account.
TSiammyself
post Oct 24 2021, 11:27 AM

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QUOTE(yklooi @ Oct 24 2021, 10:04 AM)
Reading the way the posted in post 1, I am 99.9% confident that he does not hv a US bank account.
*
QUOTE(Ramjade @ Oct 24 2021, 09:04 AM)
Do you have US bank account?
*
Here's the remaining 0.1%. No I don't have a US bank account.
TSiammyself
post Oct 24 2021, 11:39 AM

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QUOTE(xander83 @ Oct 24 2021, 01:18 AM)
Are your business online atm? You should also consider to team up with BNPL providers as they can help on you on it

Even 5% is a lot after added up plus compounding and instead of keeping actual USD you might want consider buying USD treasuries with USD
*
Yes it's an online business. It's almost 100% virtual so I don't think BNPL can help. But I'll definitely still look into it.
MrBaba
post Oct 24 2021, 12:15 PM

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QUOTE(iammyself @ Oct 23 2021, 06:45 PM)
In my small business, most of my revenue and expenses happen in USD.

Currently, the cash flows from Revenue (USD) -> Local Bank Account (MYR) -> Expense (USD)

I'm losing like 5% from currency conversion and credit card transaction fees.

So I'm thinking to hold the revenue in USD and use that as working capital:-

Revenue (USD) -> X (USD) -> Expenses (USD)

PayPal won't work I think, because not everyone accepts it and the fees are quite steep.

Anyone has any experience in this area?
*
How u receive USD ? If got USD bank account then u got more option to save money.
icemanfx
post Oct 24 2021, 12:49 PM

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If TS business is legitimate, there won't be issue to open foreign currency account at any of major local bank.

LoTek
post Oct 24 2021, 01:15 PM

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QUOTE(MUM @ Oct 23 2021, 09:05 PM)
try read on this,...hopefully it can gives you what you want...
keep your business income in USD

"Banking in the currency of your choice. MFCA allows you to receive and make payments in foreign currencies without needing to convert to and from your MYR account."

"Receive and make payments in the currency of your choice. We have all the major currencies such as US Dollar, Pound, Euro, Australian Dollar and more.

https://www.maybank2u.com.my/maybank2u/mala...cy_account.page?

Reduce foreign exchange risk by making your business transaction using the currencies of your choice. "
*
Second this. So far has been a breeze using. Mbb sometimes calls to validate some transactions (they say its bnm compliance). Using it for my larger transactions that might trigger the taxmen. Mainly Usd or Hkd from Hk/China and Sgd from Sg. Smaller transactions I have local bank ac in China/sg.
TSiammyself
post Oct 24 2021, 02:40 PM

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QUOTE(MrBaba @ Oct 24 2021, 12:15 PM)
How u receive USD ? If got USD bank account then u got more option to save money.
*
Right now it's wired (TT) into my local bank account (MYR).
TSiammyself
post Oct 24 2021, 02:45 PM

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QUOTE(LoTek @ Oct 24 2021, 01:15 PM)
Second this. So far has been a breeze using. Mbb sometimes calls to validate some transactions (they say its bnm compliance). Using it for my larger transactions that might trigger the taxmen. Mainly Usd or Hkd from Hk/China and Sgd from Sg. Smaller transactions I have local bank ac in China/sg.
*
I understand it's a current account, but does it come with a debit / credit card?
MrBaba
post Oct 24 2021, 02:47 PM

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QUOTE(iammyself @ Oct 24 2021, 02:40 PM)
Right now it's wired (TT) into my local bank account (MYR).
*
If that the case can use fintech to reduce yr conversion loss. U can ask them use wise app to send u the money u direct get RM ( Thier conversion rate way better then bank ). If u need wise referral link let me know got perk if use link
MrBaba
post Oct 24 2021, 02:50 PM

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QUOTE(iammyself @ Oct 24 2021, 02:45 PM)
I understand it's a current account, but does it come with a debit / credit card?
*
The one that tt let u hold foreign currency u go see the TNC fee left and right

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