Why Are Inexpensive Supplier Payments Important?
If you’ve ever been wondering what the best way is to make overseas supplier payments, then please keep reading on.
The digital economy is connecting businesses around the globe, so the need to make cross-border payments when paying overseas suppliers is increasing.
Paying overseas suppliers in foreign currencies can be expensive and confusing at the same time. Thus, choosing a good payments provider is crucial and can make a difference in avoiding expensive transactions due to bad FX rates.
Automate Supplier Payments and Improve Business Cash Flow
A good supplier payments provider can also help improve business cash flows. This is achieved using certain automation tools that payment providers have.
For example, automating supplier payments and doing them in bulk In other words, it is called mass payments.
It is possible to not only make supplier payments in bulk but also to set the payments platform to make those payments on certain days of the month or in the future.
Everyone knows that delaying supplier payments can improve business cash flow, but why bother doing it manually? Besides the mass payout solution, the integration with the supplier payment provider via API can completely automate this process.
How to Pay Overseas Suppliers Inexpensively
As technology and open banking are pushing payment costs down and opening new payment routes on a global scale, moving from a traditional bank to a digital bank or payments specialist is becoming the best option for SME’s.
But finding a good digital bank or payments specialist isn’t easy. We talked about how to choose the best provider and explained what to look for.
Finding a good and inexpensive provider, on the other hand, is a true fortune.Epico Finance team can help you with your choice for overseas supplier payments and foreign exchange matters. Reach out to us to get introduced to the best payment providers that can help you get the following banking features:
Single IBAN for all payments and foreign exchange transactions
Ability to receive payments in over 30 different currencies
ability to send payments in 50+ currencies to 170 countries
Ability to make mass payments by integrating via API or uploading an Excel spreadsheet
Access to effective currency hedges for up to 2 years
Process automation via API integration straight to your back-office
Payment control and audit trails
Streamlined beneficiary management and compliance processes
The relationship manager is ready to help find the best solution and answer questions.
Foreign Exchange and Supplier Payments
The easiest and most straight-forward way is to hedge all FX exposures. With the right strategy in place, businesses can avoid losses arising from fluctuations in the foreign exchange market.
There are plenty of hedging strategies out there; we have already written about some of them here.
Nevertheless, it is recommended to speak with a foreign exchange specialist who is able to understand and advise on each different situation.
Such specialists will be able to select a cost-effective solution that will keep business profit margins safe. FX specialists will also assist in the establishment of clear risk management objectives and guidelines.
You can also speak with us during a free consultation or with FX specialists from our digital banking partners to get a tailored foreign exchange risk management strategy for your business.
Conclusion
All in all, the global digital economy is connecting businesses across borders. Paying overseas suppliers is becoming the norm, so it is important to get prepared and save money on costs. We hope that this guide will help you navigate supplier payments and make improvements.
