The Secret to Easy International Payments
Regardless of the size or nature of your company, an international invoice is likely to land on your desk at some point in time. International import and export is becoming commonplace for small and large businesses alike. Perhaps a contractor in Europe specializes in a problem you are facing, or a supplier in Australia has a machine you need for manufacturing. Dealing with international invoices can be a hassle but there are ways to pay those invoices quickly, securely and at lower rates.
Don’t get ripped off by transfer fees or misleading exchange rates.
The Secret: Use an FX Provider
Unless your business is to pay invoices, you most likely have other responsibilities to handle on a day to day basis. Using an FX provider ensures that your funds get transferred securely and at the best rates possible.
Your trader will be well versed in the unique requirements for sending money to specific countries. They will make sure all the details are correct for international transfers, as some countries may have certain requirements for receiving wires to their banking system.
The traders will also be able to structure your payments to mitigate currency risk. If you have an invoice due at a specific time, you run the risk of the markets moving unfavourably and eroding your profits completely. Using a product such as a forward contract will allow you to lock in the exact exchange rate the day the deal is agreed upon, which can nullify currency risk.
Paying in Foreign Currencies
Your foreign business contacts will use their home currency for invoicing and collecting. To settle these invoices, you will need to keep in mind the exchange rate to know exactly what it will cost in your home currency. It is important to note that some invoicing may even be done in a third-party currency. (For example, you may be in contact with a Chinese manufacturer for parts that is domiciled in Canada, but they ask for payment in U.S. dollars. This type of transaction is not uncommon.)
The most common method of transferring funds to a foreign country is a wire transfer. Wires are handled by the SWIFT network. This worldwide network handles millions of transfers daily and is the standard for secure settlement. Within North America you can expect your beneficiary to receive their funds within a business day and internationally your beneficiary will receive funds in one to three business days.
Wire Transfers within North American – ~1 business day
Wire Transfers internationally ~1-3 business days
By using a foreign exchange provider, you will be in contact someone who will be familiar with the currencies, requirements, and payment details needed for different countries
Speak to a Foreign Exchange Specialist today and see how you can save on business or personal international money transactions. Call 1.866.752.7135 or fill out the form below.