Entrepreneurs wishing to join the import export business need to be well acquainted with making international business payments. This includes the avenues for making international payments and the cost incurred to make these payments and transfers. Banks and international online exchange companies have made international money transfers easier. Here is a complete guide on international business payments.
International Business Payments
Businesses that import or export goods, services, or information need to make international business payments. Making an international money transfer can be complex, and the fees can be high. To avoid problems with money transfers and currency conversions, you should start planning your international business payments early and choose a payment method that suits your business needs. You can save significant amounts of money by choosing an appropriate payment method.
Payments Methods for International Trade
Some businesses prefer to make international business payments by checks or bank draft. This is a simple and inexpensive way to make an international money transfer. However, it can take several days for the payment to reach its destination. Although checks and bank drafts are widely accepted, some countries do not accept them for payment. International money transfers requiring currency conversion can take even longer than those made with checks or bank drafts.
Other businesses choose to make international business payments with a wire transfer service or an online exchange company. International wire transfers are faster than checks and bank drafts. However, they are also more expensive and have some risks.
Wire transfers can be expensive because there is often a fee for sending the funds and a fee for receiving them. The sender may also be charged a fee for making the currency conversion if necessary. The duration of days for the payment to reach its destination may be extended, depending on your financial institution and the country of origin of the funds.
Avenues for International Business Payments
Western Union
Western Union is a money transfer service that allows people to send money around the world. The service is cost effective and convenient, but the company has been criticized for the poor quality of its customer service. Western Union is also not available in some countries, so businesses should check with their bank first before using this option.
Moneygram
Moneygram is another international money transfer services company. Moneygram does not charge a fee for domestic transfers as it does for international ones. Moneygram can be used by businesses as well as individuals and has an extensive network of agents throughout the world that allow payments to be made quickly and easily. The company’s fees are reasonable, and its customer service is reliable. Moneygram is available in many countries where Western Union services are not available.
Travelex
Travelex is another international money transfer company that businesses, as well as individuals, can use. The company charges a small fee for its service, making it especially attractive to businesses that regularly send large amounts of money abroad.
Travelex offers a wide range of payment methods, including bank wires and bank transfers, so businesses can use the service for sending payments to any country in the world. Travelex does not charge fees for individual payments, but it does charge a transaction fee for large amounts of money being sent at once.
Payoneer
Payoneer is an online payment service that allows people to send money internationally at low rates. The company’s fees are reasonable, and its customer service is reliable.
