International business payments occur when businesses send or receive money across borders. Also known as cross-border payments for this very reason, these transactions may involve making business payments to suppliers abroad or paying employees that live overseas.
There are many different methods of completing international business payments, which should be selected depending on your required time frame, the sums of money transferred, and the funds’ destination regions.
International money transfer companies and foreign exchange specialists like NewbridgeFX have made it simpler and more accessible to manage foreign payments as an international business. In this guide, we will explain the definition of an international business payment, the circumstances under which you would need to make these payments, and the process, time frames, and fees involved.
What are international business payments?
An international business payment is a sum of money sent to a foreign country for business-related purposes.
When making an international business payment, it’s important to manage and mitigate currency risk to protect your business against foreign exchange volatility. At NewbridgeFX, we offer three key risk management solutions for overseas business payments:
Forward contracts enable you to lock in a currency rate today to complete the transaction at a specific date within 12 months. This safeguards your business against currency rate fluctuations and enables you to book future payments in advance.
Spot contracts allow you to make immediate transfers at the current exchange rate. This means your business can make the transfer without setting any exchange rate targets that may not be met.
Market orders allow you to target specific exchange rates which aren’t currently available. Limit orders can be used to nominate a target exchange rate, and stop loss orders can be used to nominate a minimum exchange rate.
When do businesses need to make international payments?
International business payments are required when funds need to be sent to individuals or organisations who have provided goods or services in exchange for remuneration.
Payments can be made through banks or through specialist foreign exchange providers such as NewbridgeFX. The latter is best suited to businesses that make international transfers as they provide better exchanges and personalised services.
What do you need to make an international payment?
You may need the following information to make an international payment as a business entity:
- The receiver’s bank account name
- The receiver’s account number or IBAN number
- The receiver’s bank BIC or SWIFT code, bank address, or local routing code.
These requirements may vary according to the country to which you are sending funds. If you’re seeking further support on the requirements for making an international business payment, NewbridgeFX can provide clear guidance and instructions.
How long do international business payments take?
There are many factors that can affect how long international business payments take to reflect in a foreign bank account. These factors can include the time of day at which the payment was made, the country it is being sent to, and the day of the week. The date, local public holidays, the method of transaction used, and the specific verification checks imposed by the banks involved also contribute to processing times.
Knowing how long your payment will take to process will help to ensure that you comply with invoice due dates and avoid incurring penalties. International payments can take hours or days to be processed, depending on the combination of factors mentioned above. Payments can be processed on the same day for your convenience, and with NewbridgeFX, international payments are exceptionally quick, easy, and secure.
How much does it cost to make an international business payment?
The cost of making international business payments can vary considerably, and many businesses fall prey to excessive fees. High street banks usually charge variable rates, and many charge their customers high fees to process international payments. Therefore, it’s important to be aware of exchange rates and market fluctuations to avoid experiencing large losses when making foreign payments.
NewbridgeFX simplifies the process of making international business payments by charging no fees. We also offer the best exchange rates to our customers, helping to protect your profits while providing access to world-class services and expert advice.
Make an international business payment with NewbridgeFX
Optimise your organisation’s profits when making regular international payments by remaining aware of the exchange market and your target country’s requirements. To ensure the best results with minimal processing time and no fees involved, working with a trusted foreign exchange provider like NewbridgeFX is highly recommended.
Register your business and access benefits like multi-currency accounts in your company’s name, multi-currency balances, and 24/7 currency conversion. We offer rapid and secure payments to 200+ countries, along with real time tracking and reporting to ensure you can make international business payments with ease.