Optimise Payments to Overseas Suppliers | Flash Payments

Emily Johnson -

In a world where Australian businesses are increasingly international entities the role of payments providers has never been more critical.

The importance of choosing the right payments provider

For many Australian small businesses, having a strong relationship with overseas suppliers is a key component to maintaining smooth operations and achieving growth. But fostering trust between businesses operating in different countries can be a challenge.

Among the most tangible ways to build stronger bonds with foreign suppliers is by making sure they get paid on time. Using a payments option that is both speedy and reliable is one way that Australian merchants can guarantee a smooth working relationship with their international partners.

But choosing the optimal payments provider isn’t just for the benefit of suppliers. The right cross-border payments company can boost the bottom line of Australian businesses by helping them save on transaction costs. This is particularly true for companies that make regular instalment payments. Increasing the frequency of overseas payments can have a meaningful impact on profitability, since you will be charged fees and an exchange rate margin with each transfer.

Ways to pay overseas suppliers

There are a number of ways to settle invoices with overseas suppliers, including bank transfers, PayPal, credit card and peer-to-peer transfers.

The most straight-forward and popular way is via bank-to-bank transfers. But bank transfers are often subject to long processing times (up to 5 business days or more), exorbitant transaction fees, and high exchange rate margins. The charges from Paypal and credit card companies are often even higher.

Security of funds and convenience are two of the biggest reasons why Australian small businesses use their bank to settle invoices in multiple currencies. But these perks come at a real cost. Paying overseas suppliers via your bank can cost you up to 5.0% of the total cost of your transfer. For businesses making high-value payments of a couple thousand dollars a month this can really add up and, ultimately, have a significant impact on your company’s cash flow.

Being aware of your options is a good first step to evaluate whether your business is being overcharged on its international money transfers. You may be surprised to learn that there are companies out there that can offer more affordable, speedier transfers with the same security as your bank.

Reassess how you make cross-border payments

For Australian companies with global operations, the cost of cross-border payments can be exacerbated by exposure to fluctuations in exchange rates, fees and mark-ups, most of which are not transparent. Taking a deeper look into your business’ cost of payments can unveil a huge cost savings opportunity.

The most cost-effective way to improve your business’ cross-border payments process is by switching from a bank to an international money transfer specialist. Superior exchange rates and lower fees will meaningfully lower transaction costs for paying suppliers, regardless of whether you are making a single security deposit or regular instalment payments.

Visibility into costs is critical for businesses that operate on thin margins. International money transfer companies give you greater transparency over exchange rates and fees, helping you better-control your bottom line and improve business efficiency. Some companies even offer risk management tools like rate alerts, forward contracts and options to further enhance your ability to control FX timings and rates.

The benefits of using Flash Payments to pay overseas suppliers

  1. Save your business money. With Flash Payments, you will save on bank fees and exchange rate margins when paying overseas suppliers. We cut out the middleman from the traditional bank transfer process and pass the savings on to you. That’s why we can offer zero transaction fees and bank-beating FX rates.

  2. Speedier transfer times. Track your payments in real-time on your Flash Payments dashboard. Not only will your money arrive quicker than if you used your bank, you’ll know exactly where it is every step of the way.

  3. Reliable customer support. Got questions about your money? Flash Payments offers round-the-clock customer support. Our live chat is staffed by real people who want to help.

  4. Flexibility. Protect yourself from adverse currency fluctuations with Flash Payments’s rate alert feature. Simply enter the exchange rate you want to convert your money and sit back. We’ll email you when the market has reached that level.

  5. Top-notch security. Flash Payments uses state-of-the-art technology to ensure that your money and data are safe. Plus, we are regulated and licensed by ASIC and AUSTRAC, just like your bank.