It is getting harder to open a business bank account in Denmark. Maybe you are experiencing the difficulty right now. If so, you are not alone.
The problem exists not only for you; it exists for almost every entrepreneur in Denmark. Businesses are closing because they cannot succeed opening a business bank account. Either because they get rejected by all the banks they apply to or because of the duration of the application processes.
There are a couple of reasons why it is so difficult to convince the Danish banks. We will get into why below.
Even though it is extremely hard to open a business bank account in Denmark there is hope for you. I will get into a couple of services Startup Consulting can offer you and help you succeed to you can get started with your business.
Related: Doing business in Denmark
Why is so hard to open a business bank account in Denmark?
There are a couple of main reasons why. First, we have Hvidvaskloven (The money laundering law in Denmark), and second, we have the COVID crisis.
Hvidvaskloven got updated a couple of years ago. The update was a consequence of a bank scandal here in Denmark involving other coutries. The law was updated in such way that accountants, lawyers and banks began to be forced to keep an eye on their clients.
This meant a great deal of work which meant the additional use of manpower. Said in other words, it instantly became more expensive to keep a business bank account open. The banks became reluctant to open an account if they could not find profitability in an applicant. As all other businesses they need profits to be able to keep the banks open.
The other major reason is the COVID crisis. The crisis and the lock downs it caused showed which industries were fragile. And those industries are having most difficulty in convincing the banks. The banks found out that they were so fragile that if something like the COVID crisis were to happen again, many businesses in those industries would have a hard time again.
So with Hvidvaskloven and the eye-opening crisis it all goes to profitability and risk assessment. The fragile industries were not worth the risk.
Why the Danish bank do not allow international transfers
As if it is not hard enough to convince the Danish banks to open a business bank account for your business they would not even allow you to make international money transfers.
International transfers are critical for many businesses. They allow for you to find foreign suppliers that makes your products and services cheaper and more profitable. They allow your business to find manpower with specific specialties your business needs. International transfers can mean success or failure for a business.
But most Danish banks do not allow SME’s to make international money transfers.
We find the reason yet again in Hvidvaskloven and the reason behind the update of the law. The said scandal which led to the update involved a ton of international transfers. Especially to Lithuania.
International money transfers are hard to track. The Danish banks can not always confirm that the international money transfers you make are legitimate. And since they cannot easily find out if they are legit or not, the easiest way for the banks is to prohibit them.
It does not make sense, no, especially in our globalized world market.
But do not get too annoyed yet. Startup Consulting has the perfect solution for you if you want to be able to make international money transfers. Read more below.
The solutions to acquiring a business bank account for your business
Startup Consulting has a couple of solutions for your business and you. We help businesses every day with acquiring banking solutions. Both Danish and international solutions. Read more about it here.
Startup Consulting can help you with your applications to the Danish banks. We know what the Danish banks want from their potential clients. We know who they open business bank accounts for and whom they reject.
Before we even allow you to let us help you with the applications, we will talk with you to find out what your chances with Danish banks are. If you think that your chances are good enough, we will get started with the process which includes:
- Writing of a business plan
- Gathering important documents from your business and personal, too
- Finding suitable banks
- Sending the applications
- Dealing with the banks answers and eventual further document requirements
And we will keep on until your business get the solution it is looking for.
The pros of applying at Danish banks:
- Danish bank account numbers (Many customers, clients and suppliers need Danish bank account numbers to be able to make transfers)
- Local banks with consultants
- Your business can borrow money to finance projects
- With the help of Startup Consulting you get higher chances of approval than most businesses
- Credit or debit cards for your business
The cons of applying at Danish banks:
- High possibility of not being able to make international money transfers
- The application process takes a long time
- The requirements of the banks are extremely high
- Startup Consulting cannot guarantee your business getting a business bank account. We can only help you getting one until you get one. This can take months.
A foreign bank with Danish account numbers
Startup Consulting can also help you acquire a business bank account from a foreign bank with Danish bank account numbers. It has much more significant pros than applying for Danish banks:
- The application process takes about 2 week but more often than not much faster
- The bank does not have the same requirements as the Danish banks, meaning it is much easier to get an account
- You get Danish bank account numbers which can be vital for your business
- You are free to make international money transfers
- As a client at Startup Consulting your application process is much smoother, less difficult and faster
- We can guarantee you an account as long as you do everything by the law
- Money back guaranteed if your application should fail and it was our fault
There are a couple of cons as well:
- Only internet browser bank: No app
- No credit or debit cards (It can be solved with opening an account in another foreign bank. But the bank has also assured us that the solution is on the way)
Sound great? We think so, and if you agree then contact us immediately and get the process started! Get your business bank account as fast as possible so you can get started with your business and succeed!
Are the bank accounts with Danish IBAN numbers available for foreign, non-Danish companies as well? Yes, they are! Contact us today and get the process started!