Receiving business payments from abroad

As a business it is easy to get a bad deal on incoming transfer fees when the money is going into a bank account. The sender is in control of sending the money, but as the recipient it is possible to improve control and reduce the cost of receiving money.

Broadly speaking, a money transfer company offering a multi-currency account for regular payments, or a managed service for one off large payments, are the best options.

The reason for this is simple - the incoming cost of the transfer through each is largely eradicated.

Here’s some detail on this:

The type of international payment received

The type of international payment being received plays a huge part in which type of provider to choose. This will largely depend on the business.

Regular international transfers

Regular incoming transfers are best served using a multi-currency business account. This allows businesses to manage income in local accounts in different markets and receive local payments.

Example 1: Receiving to a standard business bank account

Example 2: Receiving to a business multi-currency account

For the most part, these also allow for sending invoices and will be sync with accounting software in real time.

In essence, this is international business transfers, managed alongside everyday finance.

Whilst not necessarily for receiving payments, being able to sync accounts with expenses and outgoing payments is also hugely beneficial.

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Enterprise, SME and large incoming transfers

This type of transfer can result in the biggest cost for the receiving business. Banks will often charge a receiving fee and will charge for the conversion of funds. For example, if a USD account receives in EUR.

For these types of transfers working with a company offering risk management and hands on account management will be a huge benefit.

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Incoming payments as a freelancer

There are some overlaps with what regular transfers and international freelancers will need in terms of receiving money. However, not all standard business accounts (Revolut Business for example) are available to freelancers. There are also certain accounts that have more marketplace and freelancer platform integrations than others.

For example, Payoneer offers an Upwork option.

Outside of these points, opting for a company that makes sending money a little easier is key. The world of the digital nomad is well and truly established, and finding the right provider that offers freedom in use, in the same way the lifestyle offers freedom of work is key.

Regular marketplace income

Marketplace income, such as through Amazon Marketplace, is the lifeblood of many businesses. Having the ability to sell globally, as opposed to just one location can change everything.

Different companies provide different levels of integration and many will work with Amazon Marketplace, Shopfiy setup and WooCommerce. Effectively, this allows plugin and lower conversion or cost on incoming card payments than going directly into a bank account.

Ecommerce businesses may find a need to show more proof of income, particularly if newer businesses. This being said, in the setup phase most companies will work alongside businesses ensure all KYC can be met.

Focus on where the money is coming from

In the end, managing currency risk can be simple if you focus on where the money is coming from - this could be clients, invoices, marketplaces and should be paired with the country and currency.

Sources and further reading

• Getting paid as a freelance with Payoneer

• What are local currency accounts