How to Reduce Costs when Doing Business Internationally?

Last Updated: 26 Apr 2022

If you’re dealing with overseas customers, you are undoubtedly experiencing additional costs for doing business, especially in currency exchange. Wire transfers, bank foreign currency exchange transaction fees, and other opaque costs could be costing you 5 cents on every dollar in revenue—simply because of inefficiencies in your overseas payment collection processing.

You also can relate to the survey results¹ reported on Yahoo! CISION. As the global economy bounces back from the COVID-19 pandemic, business finance leaders listed expanding their products into new global regions among the top five choices in driving new revenue.

In 2022, digital payments are on the rise, with between 50% and 89% of accounts receivables paid over the internet—compared to less than half in 2021. What survey respondents say are still continuing obstacles to moving to digital payments are the following:

47% feared cybersecurity attacks and payment fraud.
44% lacked payment systems and the infrastructure to handle cross-border payments online.
40% cited the cost of services as a major concern.

So, the reason it costs your business money when your overseas customer settles a bill is all about how currency exchange rates and bank conversion fees can chip away at your business profits.

For example, if your customer sends you a wire payment for USD 125,000, a fluctuation of just 3 cents in the currency exchange rate between the dollar and the customer’s currency could result in a CAD 3750 difference—a loss or a gain, depending on which side of the exchange you are on.

How Can I Receive Money from my Overseas Customer?

Register for a business account at MTFX and your business can offer a variety of payment options. For example, your overseas customers can pay in their local currency without the hassles and complexity of having to open and manage foreign bank accounts—and paying additional currency conversion costs every time your customer transfers money.

Why is MTFX a Better Choice Than Your Bank?

MTFX rates of currency exchange are guaranteed to be 2-5% better than any offered by the banks.  MTFX’s rates are transparent and fair and can save you thousands annually on currency conversions.

The MTFX exchange rate is based on the interbank market rate. Because we deal with large volumes of currency exchanges, we pass those along to our business clients.

Can I Pay My Overseas Vendors on the MTFX Platform?

Absolutely. Again, just register for a business account online. Following registration, you have access to our online dealing platform and will receive a call from an MTFX currency specialist. During that call, you can ask any questions about our funds transfer process, and our rep will make sure the currency transfer platform is set up to meet your needs.

Again, your own bank may offer currency exchange rates, but MTFX offers lower currency rates. Wire transfers between your business and your overseas supplier can be processed between one and two days.

Can I Set Up a Regular Money Transfer To and From Overseas?

Once you have registered for your MTFX Business Account, you can automate your payments to and from your clients with an all-in-one business solution. Quickly accessible with 24/7 access, the MTFX platform simplifies payments and speeds up your invoice processing through electronic funds transfer or payment services.

With MTFX automation technologies, error-prone manual data entry is eliminated. Automation technologies validate the data and transfer your funds—including batch payments--securely and quickly.

How MTFX can Help Reduce Costs when Doing Business Internationally?

If you know how to get the best exchange rates you can save thousands each year. MTFX guarantees bank-beating exchange rates that are lower than banks. Its benefits for your business include:

A business portal to manage all transactions and import invoices from your business accounting software—Manage your international payments more efficiently and seamlessly with a multi-currency account.
A platform for online entrepreneurs who want better access to the global market— level the playing field by paying your overseas online customers in their local currency.
Automatic currency exchange rate alerts to notify you when an exchange rate becomes more favorable—Don’t make that high-value deal without a timely heads up on currency exchange rates.
Forward contracts to lock in the desired rate for a future exchange—Stay in control of your business’s funds and protect against foreign exchange risks.
Daily Market Analysis and weekly Analysis from financial experts along with a monthly currency outlook—Stay current with timely updates and market intelligence in managing your currency accounts.

Let’s Get Started!

Open an account with MTFX today in just a few minutes, to benefit from currency risk management and reduce costs when doing business internationally.

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Sources:

Yahoo