How to Invoice International clients - Cheaper, Faster and Easier

How to Invoice International clients - Cheaper, Faster and Easier
Last Updated: 02 Feb 2022

You sell a great product. It does well outside your borders and your prospects for business expansion look good. 

But you have a choke point in your payment process. Payments on your invoices are slowed, and sometimes fluctuations in currency exchange rates pose a risk to the value of your product—and put repeat orders at risk.

Your overseas payment process may be the traditional method where you invoice in Canadian dollars or USD dollars, but your European customers shoulder the inconvenience (and cost) in navigating foreign currency exchange and conversion for their euros.

That process forces your customers to figure out their local currency equivalency to the amount billed on your invoice. Then to settle the account they must pay you with an international wire transfer.

Banks are Cutting into your Profits 

In between your overseas customer’s bank account and your business bank account, there are others taking their cut. That process is complicated as intermediaries add service charges and exchange rate fees. Consequently, fluctuating foreign exchange rates and payment processing fees at overseas banks reduce the number of funds you receive.

Your overseas customers shoulder the burden of additional cost and effort. That burden translates into the diminished quality of their experience with you.  Meanwhile, you take a concurrent hit when exchange rates go short and your budget projections, slide past the red line of profitability. Small businesses are vulnerable to cash flow glitches, and often fail when too much of the latter occurs.

Global Collections are the Solution  

There is a way to handle your overseas business payments without hiring local talent to engage in bank negotiations and setting up multiple bank accounts.  It is called Global Collections.

Global Collections is an optimized accounts receivables solution. Here is how the process works, and why it is seamless:

  • MTFX provides your company with local overseas account numbers in the locations where your customers reside.  We do that through international bank account numbers, in over 20 currencies.
  • Your overseas customers now have the option to pay you in their home currency. They pay your invoice immediately and conveniently. The burdens of currency conversion, and giving correspondent banks a percentage of the payment are lifted. You compete on a more even playing field.

You provide this service to your customer without increasing your overhead. You do not have to do the legwork or pay someone to do the overseas bank negotiations in a foreign market. MTFX already has the technology and infrastructure in place.

Your International Cash Flow Risk Management is now Under Control 

Now that you have streamlined your overseas payment process, you can get a better handle on your international cash flow and volatile exchange rates. As the local currency payments begin accumulating in your accounts,  you can convert those funds to your own currency and shift them back home.  This is where a handy residual benefit kicks in Controlling FX transactions allows you to pocket optimal exchange rate margins, rather than charging your customers up to 4% in international wire exchanges.  

So, the Global Collections feature accommodates both your customer’s expectations, as well as helps you maintain your own overseas cash flow on a flexible, even keel. 

Stop Stifling your Foreign Exchange Cash Flow 

MTFX is your full-service platform for risk management in overseas transactions. Contact us and learn how our payment platform can expedite your overseas collections, give your customers flexible payment options, and eliminate exorbitant bank charges and fees. 

Open your account in less than five minutes and we'll show you how foreign exchange currency risk management can protect as well as increase your business's profits.

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