• 4 MIN READ
How Fintech Is Making Life Easier for Businesses with Complex Ownership Structures
September 7, 2022
Recently, Payrow was featured on TechRound.co.uk.
We are very excited to share the news, and we wanted to give all our users a small preview of the article on our blog so you can learn a bit more about the working process with companies with Complex Ownership Structures.
You can read part of the article below:
Businesses and individuals are free to set up ownership structures for their companies in any way they please. They can do this the simple way, where the proprietor and sole shareholder of a company are identical to its beneficial owner, or employ more complex structures, in which ownership is divided among several different companies and individuals.
While there are no financial hurdles to setting up a more complex ownership structure (outside of potential legal and incorporation fees), the financial services companies tasked with identifying the beneficial owner of a business will have to expend significant resources in order to do so.
The effort required to do so has effectively resulted in many traditional banks being unwilling to provide these kinds of services to companies with complex ownership structures. And for owners of these businesses, even if a traditional bank does agree to provide these services, the wait times that typically ensue can hamstring a company’s development.
There is an immense amount of paperwork involved when going down the traditional bank route, and it can be very easy to get bogged down in the bureaucratic mire. Traditional banks have a set way of going about things, and it can be exceedingly difficult for them to adapt to unique cases posed by complex kinds of businesses.
What options do companies with complex ownership structures have then? Experts from new British fintech Payrow have shared with Techround their tips on how to obtain adequate financial services for companies with non-traditional ownership structures. — TechRound.
TechRound is the UK's independent voice for startups of all shapes, sizes and persuasions. They work with startups and businesses to help them reach their audiences so they can grow and further their messaging. They help companies achieve sustainability and expand in the UK's dynamic startup sector.