Global Banking: Maximize Your Yachting Investments12 min read

Global Banking: Maximize Your Yachting Investments12 min read

Whether you are a private owner of a luxury yacht or the owner of a yacht charter company, global banking can enable you to make the most of your yacht investment. With the globalization of the yachting market, it’s important to have banking services that operate across borders. 

Let’s find out the top reasons why yacht owners should consider global banking and how a digital bank like The Kingdom Bank can help.

Why Should Yacht Owners Consider Global Banking Options?

International banking offers significant advantages over domestic banking for any yacht owner working or doing business overseas. 

On a yacht, you aren’t restricted to one country or one currency. Whether you’re sailing across the Mediterranean or Caribbean for clients, making offshore excursions, or simply storing your boat in overseas marinas between calls, global reach is a must.

Big banks usually don’t have the infrastructure and licenses required to offer borderless banking. Their international offerings often incur high wire transfers or foreign transactions that take away profits. 

Whether you’re sailing clients around the Mediterranean or Caribbean, chartering for private trips across oceans, or mooring your ship in international marinas while you are not in use, global visibility is crucial.

Other than mere convenience, worldwide banking creates new investment and business opportunities for yacht owners. You can earn lucrative charter deals in emerging markets or buy a vessel abroad to build up your fleet.

If you can’t send money across borders or receive payments in multiple currencies, you would not be able to leverage these potential revenue streams. Global banking removes such geographical barriers.

How Can a Global Banking Account Benefit a Yacht Investment?

Perhaps the biggest advantage of a worldwide bank account is that you can pay and maintain balances in multiple currencies. For yacht owners doing business abroad, having money paid in or property held in more than one currency offers inherent protection from currency fluctuations. 

It also facilitates payments for clients in their native currency.

Instead of having separate accounts at multiple local banks, a global account allows centralised control over global funds. Owners of boats can view sales and expenses from one website, regardless of where they are. 

This consolidated cash flow overview makes planning for finances and reporting on taxes much easier than a dispersed accounting system.

Advanced global banking systems offer extra benefits such as multi-currency debit cards. These enable yacht owners to charge directly from the correct currency balance when sailing overseas. 

You’d never again have to liquidate currencies and move money from one account to another in advance of overseas travel. Multi-currency debit cards make it easy to spend money from an international account anywhere in the world.

What are the Benefits of Using Global Banking Options for Yacht Investments?

Global banking opens new avenues for yacht owners operating a business to discover clients and grow their operations worldwide. 

Let’s explore some specific advantages:

Access new charter markets

By accepting payments and sending invoices in various currencies, yacht owners can easily secure charter agreements in developing international markets. Infrastructural opportunities for luxury yachting abound in Asia, Latin America and Africa. Global banking removes barriers to accessing these new high-value customer groups.

Reduce cross-border payment fees

Sending and receiving funds in wires and foreign exchange from and to the old bank accounts carries hefty fees that detract from profits made on international charters or purchases of ships. By contrast, virtual world banks make it easy or free to send money from one currency to another across borders between your own accounts in other currencies. This keeps more cash in your pockets.

Simplify international tax compliance

It’s a chore to maintain tax returns and financial statements as funds bounce around accounts across multiple jurisdictions. A unified tax record is provided by a centralised bank regardless of where the revenues and expenses come from. This eases compliance with international tax laws.

Leverage offshore opportunities

Some offshore hubs provide tax concessions or registration exemptions for boats that can increase returns on investments in yachts. International banking makes these opportunities accessible wherever they exist on the planet.

What is the Advantage of a Multi-Currency Account in Global Banking for Yacht Owners?

A multi-currency account is one of the best features of online global banking platforms such as The Kingdom Bank. International yacht owners appreciate the flexibility of keeping balances and paying in world currencies directly from your bank account.

The advantages of a multi-currency account include:

• Natural currency protection against exchange rate fluctuations– Holding assets across multiple stable and strong currencies means yacht owners are already protected from currency movements that might affect an investment in just one currency.
• Payments in foreign currencies are made easier – Instead of using money changers and wire transfers, yacht owners can pay invoices and contractors directly in the correct currency out of the correct accounts. This streamlines operations.
• Global money – Debit cards tied to a multi-currency account let you access money anytime you’re abroad without opening local accounts. ATM transactions and purchases are debited directly from the corresponding foreign currency balance.
• Transparent financial visibility – The ability to view all global cash flows in one online banking platform lets you quickly monitor revenues, expenses and profit across regions and currencies with no effort.
• Opening up for fresh prospects– Holding balances in popular currencies allows yacht owners to immediately cash in on lucrative charter deals or boat purchases made in that currency when new opportunities are found around the world.

The multi-currency account takes out much of the slack in banking on a global scale and enables yacht owners and investors to track global accounts in a way they never could before. This maximises returns in an increasingly open sector.

Can Offshore Accounts Benefit My Yachting Investments?

Offshore banking can boost investment returns for many yacht owners as it entails tax and regulatory advantages. Online global banks such as The Kingdom Bank offer licensed offshore accounts across a number of well-known jurisdictions. 

These are some of the benefits offshore accounts provide for yachters:

• Lower or no taxes on foreign income, such as charter revenues from the outside of the country.
• Anonymity and asset protection. Ownership and accounting are kept confidential and assets protected from litigation or political uncertainty.
• Favorable regulations. Some offshore hubs offer discounted flagging yachts and facilitate cross-border company formation.
• Strategic tax planning. The proceeds can be saved as dividends and put back into the company for growth rather than being passed around and taxable each year at high domestic rates.
• Trusts and foundations. They may be capable of offering multi-generational investment and inheritance advantages that are not accessible on the national level.

Offshore banking, of course, should also be carefully scrutinized in order to make sure the bank and country are reputable and secure for the long term. Offshore banking, provided by a global bank such as The Kingdom Bank, meets the strictest of regulatory requirements through careful monitoring. 

Offshore alternatives provide opportunities for high-net-worth yacht owners to achieve global returns.

The world of yachting is a truly global affair. For a yacht owner who wants to extract as much value from the ownership of the vessel as possible, they require world-oriented banking services. Digital global banks offer seamless cross-border financial services. 

Multi-currency accounts, low-cost international payments, and offshore account services — these global banking platforms remove barriers to doing business around the world. 

The Kingdom Bank provides digital next-generation services to maximize yachting investments around the globe.