How Small Businesses Are Using CurrencyFair To Reduce Their International Payments Costs
Undeterred by ongoing international political uncertainty, small-medium businesses around the world continue to look to foreign markets for new customers and suppliers.
If you are thinking of expanding the international side of your business, now is a good time to consider reducing your transactional costs by using CurrencyFair.
How Are Other Small Businesses Using CurrencyFair?
There are typically three main ways that businesses use CurrencyFair to save money on international payments.
Transfer Money To Overseas Third-Parties
Working with overseas third-parties is part of everyday life for many small business owners:
- Sourcing product from international suppliers;
- Employing remote staff;
- Enlisting local agencies for specialist work, eg translation services;
- Working with overseas IT contractors;
- Using foreign transportation companies for goods delivery.
Whether the payments involved are large one-off transactions or regular recurring costs, businesses choose CurrencyFair to process these transfers quickly with great exchange rates.
For example, Rent A Dinosaur (yes, you read the correctly!) pays manufacturers in China in US dollars via CurrencyFair. They achieve a significant saving by avoiding going through the banks.
Similarly, when Michael Kenny of Multiband Antennas launched his new business, his South African supplier invoiced him in South African Rand. With CurrencyFair he managed to keep his costs under control. “I’ve saved a fortune. If you’re going to invoice or receive payments in different currencies, it’s a no-brainer. You’ll save a fortune.”
Receive Funds From Overseas
If you have international customers, then congratulations on expanding into new territories! Global growth, however, doesn’t come without its complications.
Many businesses have little choice but to invoice their clients in their local currency. Collecting these payments directly to your domestic bank account can expose you to hefty bank fees, especially when receiving multiple payments.
Setting up an overseas bank account to receive funds can be a hassle and involve significant paperwork. Many of our users avoid this by asking customers to pay directly into their CurrencyFair account. By using us as a collection account, you can receive multiple payments in one location, and convert the currency when you’re ready.
Is it worth doing? Let’s look at one of our customers as an example.
With clients across the world paying mostly in Euros and US Dollars, CurrencyFair customer REacTiv Limited receives foreign payments into their CurrencyFair to avoid hefty bank charges.
Here’s how Managing Director Toby Price feels about the decision to use CurrencyFair for invoicing overseas customers: “Absolutely, no doubt, I’m saving money. I’m getting a better exchange rate – a two or three per cent better rate than I’d get at my old bank.”
Transfer Money Between Company Bank Accounts
Sometimes, doing business in a foreign country requires a local bank account to manage day-to-day operations: growing your customer base, funding new projects and taking payment from local customers.
When it comes to moving profits back to head office or keeping a healthy cash-flow, a local account can keep things running smoothly. However when it comes to converting currency between bank accounts, the hefty fees that banks charge for such transfers don’t make business sense.
CurrencyFair customers manage to avoid these fees by:
- Sending money from their local bank account directly into their CurrencyFair account;
- Exchange the funds into their domestic currency using our great rates
- Transferring out of their CurrencyFair account back out to their domestic bank.
It’s as simple as that.
Why Use CurrencyFair For Your International Business Payments?
CurrencyFair is the simple, low-cost way for businesses of all sizes to transfer currency. Whether paying overseas suppliers or receiving funds from abroad, you’ll have the flexibility to exchange currency on your terms. Our online platform helps you stay in control by managing transfers on any device from any location.
If you’re ready to access fair and transparent exchange rates, click here to get started.