Things to Consider When Making International Payments to an Overseas Vendor or Supplier
With today’s global economy, finding the right overseas transfer service at the right price is essential. Here are things to consider when paying an international invoice.
The world has transformed into a single market where borders have melted away. This allows more and more businesses to adopt a multinational character by partnering with international suppliers and vendors.
Business deals are being signed with virtual handshakes, but despite these advancements, there are still a few kinks to iron out when it comes to cross-border payments. For instance, the International Monetary Fund reports¹ that cross-border payment services have shortcomings because they’re “costly and cumbersome.” Fortunately, there are new players in the field, different from banks and traditional services.
What to consider when making an overseas transfer to an international vendor or supplier?
Since we are no longer living in the dark ages, it’s worthwhile to research international money transfers, so your business can make the most of what technology offers.
According to the Bank for International Settlements² (BIS), improving the cost, speed, and reliability of cross-border payment systems would remove most barriers businesses face when expanding beyond their borders. Here’s a short list of what to consider for cross-border payments to your international suppliers.
Look for more multi-currency options
When your vendor or supplier generates an invoice, it’s important to make the payment in the currency reflected on the invoice, whether it's U.S. dollars or their domestic currency. Your best bet is to open a multi-currency account for your business, ideally, one that allows the transfer of funds in many currencies to various countries across the globe.
A multi-currency account can handle United States dollars, Canadian dollars, Euros, Pounds, and more in one place, thus avoiding the complexities of opening and managing foreign bank accounts. The key benefits of a multi-currency account include reduced transaction costs, foreign exchange risk management, and easier administration.
Additionally, by paying your supplier or vendor speedily using their preferred currency, you can negotiate more favorable terms to keep your business profitable.
Compare ways to transfer money internationally
When choosing an international payment option, the two most common ways to settle your invoices are through a bank or a global money transfer specialist like MTFX. Using a bank might seem like a convenient option because chances are, you already have an existing relationship with a high-street bank.
But banks don’t provide competitive exchange rates. They also charge high transfer fees, and the transfer process can be time-consuming. On the other hand, international transfer specialists tend to charge less than banks. For instance, MTFX offers competitive exchange rates, 3-5% lower than banks, and low transfer fees.
By choosing this method, you’re looking at savings of as much as $1,500 for every $30,000 you send abroad. This is a great start, but there are more factors to look for in an international payment provider.
Factors to look for in international money transfer services
Besides competitive exchange rates and low transfer fees, here’s a checklist of must-have features when choosing an overseas transfer service:
Convenience and simplicity. Moving money across borders shouldn’t be difficult. The best way is by skipping the bank and initiating a transfer online with a few clicks.
Automation/Repeat transfers. With the best automation technologies, you can set up regular payments to your overseas supplier, so the transfers occur efficiently and automatically.
Payment speed. Make sure your suppliers or vendors don’t have to constantly ask, “Where’s my payment?” by choosing a provider with quick turnaround times.
Help and guidance. You should be able to speak to experts or foreign exchange specialists for a personalized international payments experience.
What you need when paying overseas suppliers online?
If you have chosen to pay for your overseas supplies quickly and easily online, you’ll generally need the following information:
Beneficiary account number
Bank Swift code
Reason for transfer
Using MTFX, you can open an account within five minutes and fund it via bank transfer or bill payment. Next, use a rate calculator before you initiate your money transfer, and once you send the funds, you can track the money online until it’s delivered within 24-48 hours.
Send money to your overseas supplier or vendor today
Whether you’re already trading internationally or preparing to move beyond your domestic market, it’s best to find a payment service that offers convenience and cost savings with an all-in-one business solution.
At MTFX, we help you tap into new global business opportunities by streamlining how you pay your overseas suppliers and vendors. As a result, you can enjoy a fantastic relationship with international suppliers with our specialized service, competitive exchange rates, and low transfer fees.
MTFX offers all the features you need when sending and receiving money abroad, such as:
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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.