Making Import Payments

 

When making import payments to your supplier – whether you are making a payment in advance, in instalments or on delivery – an important factor you should be thinking about is the foreign currency exchange and the international money transfer.

 

When making import payments to your supplier – whether you are making a payment in advance, in instalments or on delivery – an important factor you should be thinking about is the foreign currency exchange and the international money transfer.

Most of the time when making import payments you will be paying your supplier in a different currency to your own and so the exchange rate will ultimately determine how much you will be paying your supplier. With exchange rates fluctuating all the time, it can make managing your finances difficult.

Paying Through Your Bank?

Firstly, going through your bank to pay your importer seems like the easiest and logical thing to do, but with terrible exchange rates and bank charges per transaction can make paying for imports more costly than it ought to be and placing even more strain on your finances.

Currency Exchange Payments Products

So what can you do to control your finances? Depending on the arrangement you have with your supplier there are different foreign currency exchange products you can use to help structure your payments.

  • A spot deal is ideal when you need to make a quick payment to your supplier as the present rate will be assured for you to make the payment.
  • A forward contract allows you to fix the rate for up to two years which is ideal if you need to make regular payments.
  • If you need more flexibility than a forward contract then a time option may be good option as it will allow you to “draw on” on funds as when you need them.
  • If the length of time is not an issue in paying your supplier then a limit order can be useful. If you expect a better exchange rate in the near future your funds can be transferred when it reaches the rate anticipated and you are still protected from the rate getting worse.

The Solution for Making Import Payments

RationalFX are experts at providing these payment options and unlike the banks offer thorough guidance that best suit your import payment needs and save you money.  We offer extremely competitive exchange rates at whatever currency you may need and charge very low fees for doing your transfers.

We are a cost effective way to make import payments easier and cheaper. Whether it is a single or regular transfer we are highly experienced at sending money worldwide. Authorised by the FSA and regulated by HRMC, we can ensure your payments are made efficiently and safely. Register now to make your import payments!