Import and Export Businesses - Increase Profitability with Online Money Transfer

A container-loaded cargo ship pulls into a port in Singapore, Rotterdam, or Long Beach. In real-time, the port logistics control (PLC) management applications have detected the arrival of goods like automotive parts, electronics and frozen food.

Thanks to digital transformation, RFID tags and the Internet of Things, the accelerated pace of import and export business moves business forward faster.

When large quantities of goods arrive at a port from long ocean voyages, there are often several parties awaiting payment:

• Manufacturers or processed goods suppliers

• The maritime transportation/logistics service provider

• The local government tax agency

• Contractors, such as freight brokers for land transportation or security firms

A money transfer service for businesses that specialises in overseas transactions can facilitate secure payments to ensure exporters and importers maintain control, transparency, and visibility over their international payments and remittances.

Photo by chuttersnap / Unsplash

Outgoing Payments for Importers

When an imported goods broker or retailer receives a truckload of products at their receiving dock, they can often capitalize on percentage discounts for prompt payment. An online payment transfer service provider like XE that supports large B2B payments up to and including amounts in excess of $500,000 USD (or international equivalents) can get payments from bank to bank quickly and securely.

For companies that need to pay for a large cross-border goods shipment, XE has an investment-grade credit rating with Standard & Poors. We provide credit facilities to accommodate your requirements.

ACH and wire transfer payments through traditional banks often carry significant fees, and exchange rates at your bank will typically favour the bank. Further, XE offers forward contracts which can lock in a specific exchange rate for a contracted period of time. For companies that buy products in countries with volatile exchange rate fluctuation, a forward contract offers cost containment and risk management benefits. Rate alerts can also help importers make larger purchases when the exchange rate is in their favour.

Photo by Fancycrave / Unsplash

Inbound Payments for Exporters

Cash flow can be a challenge for any company, but especially so for small-to-medium sized enterprises. Online money transfers can eliminate cash flow bottlenecks. Many businesses require partial or full payment before goods are shipped overseas.

For companies selling large equipment to overseas companies, an online money transfer service provider can support monthly scheduled finance payments. The convenience and immediacy of Electronic Funds Transfer can reduce the number of late payments and reduce the average invoice-to-cash timeframe.

Consolidation of International Accounting

International money transfer accounts can assist accountants and business owners to have visibility into payments and receipts from countries around the world. Exporters can make strategic decisions on marketing campaigns, shipping and international distribution partnerships based on volumes of sales from each territory.

Are you a manufacturer looking to expand your sales into new markets, or an existing exporter looking to accelerate payments for cross-border shipments? Are you looking for ways to mitigate the risk of turbulent exchange rates for the purchase of products or components?

XE's foreign exchange corporate traders and business advisors offer a broad range of value-added services to help you optimize productivity and eliminate cash flow barriers.

Open a business account now, or contact a foreign exchange business dealer today.

The information, materials, accompanying literature and documentation available on our internet site is for information purposes only and is not intended as a solicitation for funds or a recommendation to trade. XE, its officers, employees and representatives accept no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.

While we take reasonable care to keep the information on the website accurate and up to date, there may be occasions when this is not possible.

Case Studies and articles are not intended to predict future moves in exchange rates or constitute advice.

XE makes no representations, warranties, or assurances as to the accuracy or completeness of any information derived from third party sources. If you are in any doubt as to the suitability of any foreign exchange product that you are intending to purchase from XE, we recommend that you seek independent financial advice first.