Many Canadian businesses are looking further afield and sourcing products from overseas suppliers. How can they reduce costs when making international payments?
The global marketplace is rapidly expanding, and innovative Canadian businesses are carving out a piece of the pie for themselves. If your business already has suppliers based overseas, it’s high time you considered the cost of doing business internationally and what you can do to save more money.
When you begin sending money transfers to your overseas suppliers, banks might seem like the most convenient option. Yet, there are better opportunities to tap into more flexible and cost-effective business money exchange services. So, if you’re looking to pay overseas suppliers on the regular, here’s what you need to know.
Sending money overseas? Here’s why banks are not the best option
Sending money overseas to suppliers can be convenient and fast with minimal impact on the value of your international transfer — but only if you choose the right provider. Thus, the question is, “Should you use your bank to pay your across-the-border suppliers?” Here’s a checklist that shows why banks are not the ideal candidate.
Cost – Banks don’t offer specialized money transfer services, so the exchange rate you get is rarely the best on the market. You also have to shell out extra to cover banking fees.
Speed – Deadlines can make or break a good deal, but it’s challenging to come out on top with costly delays and waiting times of 4-6 days (the norm for most banks).
Accessibility – You can usually only make international money transfers during office hours when using a bank. If you want to improve business agility, it’s better to look for options that offer 24/7 online access.
Convenience – Since most banks don’t provide specialized money transfer services, you’re missing out on automated technologies and foreign exchange tools that streamline your outgoing payments.
Regular transfers – Repeat money transfers can be costly when using banks, given the not-so-competitive exchange rates and high fees.
Customer service – You might be hard-pressed to find foreign exchange specialists at banks that help create a more personalized experience.
The best way to send money overseas
It may be necessary to consider various currency pairs when your suppliers are scattered across the globe. For example, let’s say you have an upcoming payment due to a European supplier. You need to carefully consider the Canadian dollar to euro exchange rate before you transfer money to a foreign bank account. With a US supplier, the USD/CAD comes into play.
To avoid this, you need to ask the right questions, including the following:
What information do I need to send money to pay for overseas suppliers?
Make sure you have the following information on hand when sending money to pay for overseas suppliers:
Beneficiary account number
Bank Swift code
Reason for transfer
Can I set up regular payments to pay my overseas suppliers?
Yes. The first step is registering an MTFX business account in under a few minutes. With your account, you can easily automate your payment and send transfers in 50+ different currencies to 200+ different countries. MTFX’s 24/7 online platform offers industry-leading automation technologies that eliminate manual errors while improving the efficiency and security of your transfers.
MTFX offers several benefits for your business:
Exchange rates are 3-5% lower than banks (send 30,000, save up to 1,500)
Competitive transaction fees
A variety of payment options
Secure, multi-currency account to streamline payments to overseas suppliers
Efficient services and fast turnaround times of 1-2 days
Combination of foreign exchange tools and specialists for a better transfer experience
Sign up to receive the latest market news from our experts.
Who can use the MTFX payment service?
Individuals and businesses who need to send money in foreign currency internationally can use MTFX’s services. The beneficiary of the transfer must have a bank account for the funds to be paid into.
Personal clients usually use our services to transfer money between their own accounts in two different countries.
Business clients usually use our services to transfer funds to suppliers, fund international operations, or repatriate overseas earnings.
Why should I use MTFX and not my own bank?
MTFX offers currency exchange rates that are 2-5% better than those offered by the banks. Personal clients usually save hundreds of dollars per transfer and for larger transfers, the savings can run into the thousands.
We also offer excellent customer service, dedicated currency specialists, and a 24/7 online platform with best-in-class technology that allows you to complete transfers from any device virtually anywhere in the world.
Business customers save with better currency exchange rates and proven solutions geared towards managing and mitigating foreign exchange risk. Our solutions include forward contracts, market orders, rate alert services, and much more - all backed by great technology and great people.
How do customers send funds to MTFX?
Funds can be transferred via wire transfer, Electronic Funds Transfer (EFT), or ACH payment services. MTFX maintains bank accounts in all major currencies with highly-rated banks. Our banking infrastructure ensures that you can transfer funds to us quickly and securely.
How long does it take MTFX to transfer funds?
Our global network of banking partners allows us to get funds to virtually anywhere in the world quickly and efficiently. Most wire transfers from MTFX will be received by your beneficiary within 24-48 hours. MTFX also offers same-day transfers that are almost instantaneous, as well as low-cost in-country payment services for your less urgent transfers. For further information please speak to one of our currency specialists.
Please read the following update before logging in to your MTFX online account
We have updated our online dealing system to provide you with better functionality, more unique tools and an overall enhanced client experience. MTFX Online 2.0 is now available for your dealing needs. You can begin using our enhanced online portal today.
Please note that the traditional portal will be available for use until MAY 30th 2021 at which point it will be decommissioned.