This post is brought to you by our friends at Payoneer
The term “global village” has become somewhat of a cliché in the last decade, but one cannot ignore how perfectly coined it really is. Today it is easier than ever to communicate and do business across borders and oceans, currencies and time zones.
Global business used to be reserved for big corporate, companies that could afford to branch out and foot high travel and communication costs. Nowadays, small and medium-sized businesses stand to benefit just as much as the big companies – if not more. Need to hire a freelancer overseas to design your website? No problem. Working with a supplier in China? Piece of cake.
A whole world out there awaits for ambitious SMBs, but under a single, crucial condition: moving money around must be seamless. If you’re struggling with getting paid and paying others across borders, your ambition could quickly become your downfall; don’t let international payments be your company’s kryptonite.
Cash-flow is the blood coursing through the veins of your business’s metaphorical body. You can’t pay others before you have money to pay them with. Getting set up as a seller or a service provider on international marketplaces like Amazon and Wish is easy enough, but it’s essential to make sure the money isn’t going to meet any obstacles on the way from your customer to your pocket.
Find a quick and inexpensive solution. International bank transfers are expensive and slow. They can cost up to $50 per wire and take up to 15 business days in some cases, depending on where they’re coming from. If you’re dealing with currency conversions on top of that, you may be subjected to expensive bank FX rates. Having a local bank account in the region where you’re doing business would be the easy solution for your clients, but would entail a headache for you. What’s the solution? International receiving accounts. Payoneer’s Global Payment Service provides users with local receiving accounts in the US, UK, EU, China and Japan (more coming soon). Your clients get to enjoy the ease and low cost of a domestic bank transfer, and you don’t have to deal with the expensive waiting game. Win-win.
Make it easy for others to pay you. If it’s hard for a foreign business to pay you, they may think twice about working with you in the future. The easier it is for them to pay you, the happier they’ll be. Aside from the Global Payment Service, Payoneer’s users can send their clients and customers a Payment Request. The client can then pay you directly via credit card, eCheck, or bank transfer; no hassle, no high fees for them. What’s more, if your client is a Payoneer user too, they can pay you for free.
Be prepared for growth. Don’t limit the opportunities your business has to grow and expand. Work with an international payments platform that gives you lots of options for what currencies you can receive around the world.
Getting paid is just half the story. Whether you’re outsourcing some processes to freelancers overseas or managing part of your supply chain in Asia, you’re going to need a solid solution for paying others on time (and inexpensively).
Outsourcing isn’t just for big companies. The freelance economy is taking over the world. Marketplaces like Upwork and Fiverr bring freelance professionals and clients together from all over the world. The evolution of this economy is particularly helpful to small businesses, who may only have a sporadic need for some professional services (such as web design, translation or marketing) and can save money on hiring employees. Most marketplaces will also take care of the payment process for you, enabling you to pay with a credit card or eWallet. In other cases, however, it’s helpful to have a free user-to-user payment services like Payoneer.
Manufacturers/suppliers will almost always be overseas. Unless you’re living in Asia, chances are at least part of your supply chain process is happening overseas. Having a solid cross-border payment system in place means that you don’t have to deal with bank transfer fees and astronomical currency conversion rates when paying your providers. There are many solutions out there for paying colleagues and service providers, and some of them are even free.
The Freedom to Grow
Open up a world of opportunities for your business with a safe, fast, compliant payments provider. Not only will it help you sleep at night, it’ll give your business all the resources it needs for more growth. With cash flowing in and out of your business freely, the sky is the limit.
About the Author
Payoneer is an innovative payments platform that empowers online sellers worldwide to get paid by international companies and marketplaces in a secure, flexible and low-cost manner. Founded in 2005 and based in New York, Payoneer is venture-backed, profitable and for the past four years was included in Inc. 5000’s Financial Services companies list of America’s fastest-growing companies.