A holding company is a company that owns a controlling interest in the shares of other companies, called subsidiaries. The holding company does not usually produce goods or services itself. Its purpose is to own and control the subsidiaries and to provide them with financial and administrative support. With that in mind, they still have to manage cross-border, high-volume transfers or dividends safely with reliable payment providers that understand their activity fully.
In our case study, we explain the understanding of holdings’ activities, their management of different assets and why this may become challenging. We also review the solutions provided by PayDo and its professional approach in cooperation with holding companies.
The Challenge
While holdings manage their activities, it is essential for them to handle cross-border, high-volume transfers or dividends. Simply put, the nature of this activity comes from managing those assets or other companies they control. Therefore, when the controlled business shows good performance, holdings must deal with a large sum of money, namely with high-volume transfers or dividends.
Here is why it becomes more challenging for holdings to open accounts as many aspects arise, from the problem of limits to the economic background of the mentioned transfers. Additionally, the transfers can be done by holdings to the business to support their activities, which also requires high-volume transfers.
Holdings also face the challenge of providing the proper audit of assets they currently hold. In other words, they have to get special audit reports to evaluate the assets, which is often asked by banks. Since holding companies often handle large sums of money, it is important to have strong security measures.
The Solution
PayDo is a UK Electronic Money Institution (EMI) authorized by the Financial Conduct Authority (FCA). Experienced and professional approach to Holdings makes PayDo the top-notch solution for opening business accounts for this activity.
PayDo understands the activity of holding companies and provides the professional flow of safely sending or receiving cross-border, high-volume transfers and dividends. PayDo offers a straightforward business account opening process with all the necessary steps.
PayDo protects its clients’ funds through a process known as safeguarding, which essentially uses the segregation of 100% of its clients’ funds from PayDo’s funds used for operating its business. Compliance with these ensures your money is always safe and secure.
It also includes:
24/7 availability. Users can instantly check their bank balances and account statements and transfer funds anytime.
KYC. When creating a PayDo account, the users undergo a de-anonymization process for primary verification. An automated KYC verification system can be triggered after creating an account based on the transaction amount. It adds a level of verification.
Convenience. Registered users can use almost all the services. Transactions can be scheduled at any time.
Protection. Your funds are kept from the company’s operational funds at Tier 1 banks from the UK and EU.
Holding companies can send or receive cross-border, high-volume transfers using SEPA, Cross-border or Fedwire by opening a multicurrency account with 6 currencies (EUR, USD, GBP, AUD, CAD, and DKK) on PayDo. The multicurrency business account with a dedicated IBAN allows our clients to use SEPA, SEPA Instant, Cross-border, Fedwire, and Target2. In addition, PayDo also provides local account details, granting access to FasterPayments, Chaps, and Backs for the UK and Kronos2 for Denmark.
PayDo also provides their clients with high limits by default for sending or receiving transfers. Additionally, our professional approach allows holding companies to increase their limits as requested if necessary. Additionally, the flow is properly handled with the assistance of a personal manager.
The Outcome
Holding companies can execute their main activities safely to send or receive cross-border, high-volume transfers or dividends by opening an account on PayDo. With the experienced and professional approach to this business, PayDo offers a straightforward process with all the benefits, including proper security measures, a multicurrency account with 6 currencies and default high limits for sending or receiving transfers.
Contact us to receive and send cross-border, high-volume transfers or dividends safely.
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