| Expert guidance for businesses making overseas
payments The recent global recession hit the vast majority of the world’s economies hard, and while many countries, including the UK, are fighting back and showing occasional glimpses of recovery, some nations are way ahead and revelling in the upturn. Statistics suggest that the likes of China and India have already emerged from the recession, and this has forced many UK-based businesses to look to operate in foreign markets to import and export products and services. Overseas payments, which could include paying invoices for foreign staff or buying manufactured products, will be necessary while operating internationally, so it is crucial that businesses factor in these costs. However, with the British economy still trying to recover, companies wanting to operate on a global scale for the first time will no doubt be keen to run a tight ship, so they would be wise to take note of some expert foreign payment advice. Andrew Holloway, foreign exchange specialist, explains: “Any company that wants to expand and operate abroad should pay particular attention to the costs that they will incur from making overseas payments. Foreign exchange brokers are specialist in getting fast, secure and cost-effective payments made, and are often a better option than high street banks.” Those companies making overseas payments should be aware that using a broker will enable cost savings on the transaction, and in some cases this can equal a better saving of up to 4% when compared to banks. This is because, in many cases, foreign exchange specialists and brokers have the expertise required to find better exchange rates and deliver that rate to a company. A business will be able to build a relationship with a dealer, and often is allocated a dedicated point of contact for all foreign exchange, and when venturing into overseas markets are bound to appreciate the personal service that many large banks struggle to deliver. Banks will struggle, quite simply, because of their size. While the brand awareness of the large banks is high, the standard of services they can offer in terms of foreign exchange is significantly lower than exclusive foreign exchange specialists. If companies want to remain efficient and effective they should also have ‘swift overseas payments’ on their list of priorities, and again this is far more achievable when using a specialist broker than a high street bank. Holloway adds: “If companies want to be professional and effective when operating abroad, they’ll need to ensure that the overseas payment process is completed as fast as possible. Foreign exchange brokers can offer this service.” Brokers have the ability to apply an exclusive focus to a company’s foreign exchange, and for this reason can prepare funds and make payments on behalf of the business far quicker than a bank. Moreover, specialist foreign exchange brokers have a far greater understanding of the overseas payments process, which just adds to its efficiency and effectiveness. As always, security is a huge factor when it comes to money transfers, and businesses must be aware of the dangers that they could be exposed to when making overseas payments. High street banks and legitimate Financial Services Authority -registered foreign exchange brokers, will be the ideal option for companies that want to ensure overseas payments are delivered intact. Businesses should be aware that the FSA guidelines require brokers to have one of two systems in place before they can be approved, as Holloway explains. He says: “If your broker is not FSA-registered, he or she is not legally allowed to make payments, it’s as simple as that. The FSA requires brokers to either hold funds in separate accounts, or have Professional Indemnity (PI) insurance.” Good foreign exchange brokers will even segregate accounts for maximum security, and companies would be wise to request this of a broker. For businesses paying invoices in foreign currency, there are pot holes and banana skins littered throughout the entire process. To keep costs to a minimum and to ensure that a business is run as effectively and efficiently abroad as it is in the UK, companies should seek the advice of specialist brokers. Only then will they be able to be absolutely sure that the process of overseas payments is being carried out quickly and securely, enabling the business to thrive. Get an instant quote | Contact us |
Latest Rates (Transfers Only)
Last updated: 15-08-2012
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