There are a number of ways of making international payments for importers. As an importer the way you want to pay your supplier is obviously the safest and cheapest way.
The bank is a common route to make international payments for importers, but with high bank fees per transaction and a poor rate of exchange can make importing more costly than it should be.
Getting the best foreign currency exchange rate available is key to cutting your payment costs. With exchange rates going up or down and some currencies more volatile than others it is necessary to protect your business as much as possible.
Depending on the agreement you have to pay your supplier there are different options to make international payments for importers which can range from:
A spot deal which can be useful if you need to make a quick payment whereby the present exchange rate can be guaranteed when you make your immediate payment.
In contrast, forward contracts allow you to fix a rate for up to 2 years; this just requires a small deposit usually 10% of the funds you wish to send.
Time options are similar to forwards however they are more flexible as they allow you to “draw down” on your funds earlier than the maturity date set.
Limit order can be used when you have time to pay your supplier. If you anticipate the exchange rate can change in your favour in the near future funds can be transferred when it reaches that rate. Furthermore you can also be protected if the rate goes down to a certain level.
These payment options can all be found by using a foreign exchange broker like RationalFX. We can guide you through what is the best option for you and your business. We offer competitive exchange rates closer to the up to date market rates and charge low fees for transfers.
For importers we are a cost effective way to send money to your supplier. Specialists in dealing will regular transfers as well as single transfers and highly experienced at sending money worldwide to make your international payments.
RationalFX are authorised by the FSA and regulated by the HRMC. Opening an account is ideal for doing business as we provide a service that is efficient and safe to use. Through the web or on the phone we give more transparency to international payments for importers.