Using overseas suppliers is a great way to lower costs and manage overhead. However, paying overseas suppliers can be a hassle. Fees for bank transfers can skyrocket, and funds that are transferred through banks take time to reach their intended recipients. Overseas suppliers such as manufacturers, distributors and the sort all need to be paid using international money transfers, and fees for international money transfers can quickly add up. Hidden fees and exchange rate inefficiencies can lead to added supplier costs for your business over time.Those running drop-shipping businesses involving sourcing inventory overseas and reselling it in local markets, need to frequently transfer payments for goods from international suppliers quickly and with low bank fees. However, banks charge high fees to make transfers, and a transfer can take several days due to short bank hours. Importers who depend on suppliers abroad are in need of a fast, efficient, low-fee transfer method in order to grow their business.
Low Fees and Savings
Paying manufacturers for goods is a challenge for importers wishing to expand their business. Keeping cost of goods down is one way to maintain a profit, but keeping bank transfer fees low is also a key point in maintaining a profitable margin. Many manufacturers overseas will not release goods without payment, so the ability to transfer funds and pay invoices overseas quickly is critical. Unknown exchange rates and high transfer fees can also hurt a business’s bottom line.
For example: You have to pay a supplier in China $5,000 by tomorrow morning. The transfer fee (SWIFT) is $50 and the high exchange rate reduces your overall payment by a further $100. Now you are faced with two options: the first, not paying the overall transaction costs so the supplier will receive only $4,850; the second, add those lost $150 in advance to make sure the supplier gets the full amount. As you want the supplier to send you the goods you purchased, you are actually left only with the second option.
With Covercy, the overall costs can get as low as 80% of that of the bank and the final amount for the beneficiary is guaranteed during the online process, which saves you all this trouble.
As an importer you can ensure that the actual funds you transfer to overseas suppliers will reach their final destination quickly and with lower fees by taking advantage of Covercy’s innovative transfer services. Using Covercy’s transfer method, the funds will be transferred with lower fees, which are set up front and won’t be changed later, and will take place quickly. This leads to saving on every transaction.
Save time on supplier payments overseas
Using online transfers for international payment transfers can save businesses time, by avoiding the long lines, availability of your banker and bank fees. Banks in different countries have different operating times, which means that a transfer can take several days to go into effect. Covercy harnesses the power of local banking to ensure that the process is quick, and that the bank fee is known before making the payment. This feature makes it easy to pay invoices and make deposits for goods and services overseas.
Transfer Funds Safely
Safety is also a key point to take into consideration when choosing a payment transfer system for making first deposits and paying invoices to external suppliers overseas. Covercy’s money transfer system is reliable and secure, fully compliant with all the standards and regulations set by the UK Financial Conduct Authority (FCA) and is registered with the UK Data Protection Act Registration.
Transparency and Trust
With Covercy, when making an international payment to an overseas supplier, you’ll have the convenience of making a local bank transfer in your local currency, while expanding your supply and manufacturing reach to international suppliers. Covercy believes in transparency along the entire transfer process, offering eligible transfers a guaranteed final exchange rate which will not change.* It also offers the ability to track your money transfer order in your dashboard until it is complete, ensuring your suppliers get their payments swiftly. Covercy’s low fees, and set up-front exchange rate, will give your business an advantage when paying overseas suppliers, and keep you ahead of the competition.
* Rate Guarantee is valid for up to 48 hours from the moment you have created a transaction in the system. Not all transfers are eligible for Rate Guarantee. Please follow on-screen instructions accordingly. Terms and conditions apply.