Global Collections Services Make for Loyal Overseas Customers

Last Updated: 18 Nov 2020

You sell a great product. It does well outside your borders, and your prospects for business expansion look good.

But you have a choke point in your payment process. Payments on your invoices are delayed, and sometimes fluctuations in currency exchange rates pose a risk to the value of your product, which can put repeat orders at risk.

Your overseas payment process may be the traditional method, where you invoice in Canadian dollars. Still, your European customers shoulder the inconvenience (and cost) of navigating foreign currency exchange and conversion for their euros.

That process forces your customers to figure out their local currency equivalency to the amount billed on your invoice. Then, to settle the account, they must pay you with an international wire transfer.

Banks are cutting into your profits

Between the wire transfer and your business coffers, others are taking their cut. That process is complicated as intermediaries add service charges and exchange rate fees. Consequently, fluctuating foreign exchange rates and payment processing fees at overseas banks always reduce the amount of the invoice you are billed.

Your overseas customer shoulders the burden of additional cost and effort. That burden translates into the diminished quality of their experience with you. Meanwhile, you take a concurrent hit when exchange rates fluctuate and your budget projections slip past the red line of profitability. Small businesses are vulnerable to cash flow issues, and often fail when they occur too frequently.

Global collections is the solution

There is a way to handle your overseas business payments without hiring local talent to negotiate with banks and set up multiple bank accounts. It is called Global Collections. Global Collections is an optimized accounts receivable solution. Here is how the process works and why it is seamless:

MTFX Foreign Exchange & Global Payments provides your company with local overseas account numbers in the locations where your customers reside. We do that through international bank account numbers (IBAN) or virtual account numbers (VAN).
Your overseas customers now have the option to pay you in their home currency. They pay your invoice immediately and conveniently. The burdens of currency conversion and giving a percentage of the payment to correspondent banks are lifted, and you will compete on a more level playing field.
You provide this service to your customer without increasing your overhead. You don't have to do the legwork or pay someone to handle overseas bank negotiations in a foreign market. MTFX Foreign Exchange & Global Payments already has the technology and infrastructure in place.

Your international cash flow risk management is now under control

Now that you have streamlined your overseas payment process, you can better manage your international cash flow and volatile exchange rates. As the local currency payments begin accumulating in your accounts, you let the funds sit as a cash reserve to service those local markets.

Alternatively, you can convert those funds to your own currency and shift them back home. This is where a handy residual benefit kicks in. Controlling FX transactions allows you to pocket optimal exchange rate margins, rather than charging your customers up to 4% in international wire exchanges.

The Global Collections feature accommodates both your customers’ expectations and helps you maintain your own overseas cash flow on a flexible, even keel.

Stop stifling your foreign exchange cash flow

MTFX Global Collections is your full-service platform for risk management in overseas transactions. Contact us to learn how our third-party payment platform can expedite your overseas collections, offer your customers flexible payment options, and help you avoid exorbitant bank charges and fees.

Open an account with MTFX today and start enjoying fast, cost-effective, and convenient international money transfers.