How to save on your global business payments?
Online business payments are a simple, convenient, and probably the most affordable way to transfer money to another company’s account. Modern and innovative payment solutions for small businesses save the company from a vast number of unnecessary actions, automating those processes that previously had to be done manually and spend a lot of time and effort on it. However, some online payment methods for small businesses carry a hidden threat to the company. In particular, we are talking about online bank payments, when the company has to pay a reasonably high commission.
If a given payment is made once or twice, it is not a problem, but if such payments are in flux, the commission costs can be extremely high and significantly impact a firm’s financial bottom line.
When a company transfers money overseas, its costs can exceed every conceivable value. So how can companies save money by making money transfers, and what online payment options for small businesses are the most efficient and less costly? We’ll address these and other questions in this article.
Today’s large companies make thousands of payments per month, and some firms have tens of thousands of payments. However, regardless of how many payments a company makes, they all share the same problems – payments flow is too low, and money transfer is much more complex than companies expect. Of course, the most crucial issue is the high fees for international payments transfers.
How do you solve these problems? We can give you some tips to help you achieve your goal of reducing the cost of international payments while making those payments more accessible, more convenient, and faster.
Choose a reputable company that focuses on innovation
When you choose a company to make international payments, you are essentially making a major choice. If you choose incorrectly, not only will you ensure problems with other companies receiving funds on your behalf, but you will also lose significantly on commissions, not to mention the likelihood of contacting a fraudulent firm.
Why do we focus on innovation specifically? The payment systems that for many years were considered almost the only correct and the most effective today are outdated and lead to a significant increase in the cost of services and other problems.
Of course, you can traditionally use the services of banks but be prepared that you will overpay the commission, and your payments will take up to 5 days. At the same time, by turning to a company specializing in international payments, you can save on commission and be sure that the money will come to the account of another company as quickly as possible.
It’s no secret that many companies use the SWIFT payment system. Still, innovative companies are convinced that this system is costly and far from being the best, if not outdated. That is why many innovative companies specializing in payments spend time and money to create their own local network. Wise is an example of such a company. Creating such a network makes payments even cheaper for clients, mainly because the costs associated with currency conversion are significantly reduced.
Opt for transparent conditions
Do not choose a company that cannot even tell you what costs will be incurred to transfer the payment. It is better to choose transparent terms of cooperation, allowing you to know at the outset all the costs you may incur. Also, please pay attention to the fact that many brokers and banks choose the average market rate but set a 4% or 5% surcharge on it, increasing costs. And this is despite the basic commission, which is also often very high. By and large, such markup is a hidden cost and does not characterize the company as honest and open.
Do not forget about the speed of payments
Suppose in the case of money transfer from one person to another, the recipient of funds can wait from 3 to 7 days, as in transfers through banks. In that case, the company’s relationship with other firms increases the speed of crediting funds. After all, if your chosen firm delays with the transfer, it will harm your reputation, you will make suppliers and other business partners wait. They will blame you and not the bank or another company you entrusted the transfer to. In addition, the delays will worsen your cash flow and will not have a positive impact on your business.
That is why it is so important not to make one of the major mistakes in choosing payment companies, focusing solely on the amount of commission and other financial conditions. Immediately clarify from the firm in what terms the payment will be credited to the account of another company or another convenient way. In this case, the phrase “the faster, the better” should be taken literally. Ideally, if the payment will be made instantly, but in transfers between countries, this is very rare. Therefore, it is enough if the company of your choice makes the payment within 24 hours. Thus you will not make your business partners wait for a long time.
Choose a provider with a batch payment function
Not every company can effectively manage payments sent abroad. For example, if your company has remote employees from different countries, there can be difficulties with their payroll. However, you can always avoid them if you choose a company that provides all the necessary tools to make batch payments quickly and smoothly. By doing so, you’ll significantly reduce your workload, and you won’t have to worry about the outcome.
Thanks to the batch payment function, the provider you choose will make up to 1000 payments at a time. All you need to do is fill out a unique template, and all payments will be made almost instantly.
Don’t forget to check with the company to find out what other features they can provide and assess how you can benefit from them.
Keep in mind that there are quite a few ways you can make payments abroad much faster and easier, and most importantly, not to overpay on fees.
All in all, you can always search for “the best online payment system for small businesses UK,” but it is much better to take the time to find out all the necessary information to compare the conditions of several companies with each other and choose the best and most cost-effective option.
We at PayDo, believe that online payments will become the primary method of mutual settlements between countries. Therefore, we always strive to provide quality financial services to every user anywhere in the world.
If you are an individual or a legal entity – just contact us, and you will receive a reliable platform for receiving/sending funds around the world.