What are the key considerations when doing business overseas?
In this competitive global landscape, it’s important to reduce risk to your bottom line. Whether you’re an importer making overseas payments to your supplier or an exporter with your sights set on overseas expansion, managing your currency risk exposure could make all the difference.
Below, we’ve created a list of key considerations to aid the growing number of businesses competing in today’s global environment.
- Getting a good rate on your FX payments can make an immediate difference to your bottom line. Rates of foreign exchange providers like OFX are often 3-4% better than banks, and could save you thousands in a single transfer.
- Many Australian companies do extensive business with China, which can be tedious for the unprepared foreigner. The Chinese government heavily regulates CNY, so to avoid delays to your payments ensure you’re up to speed with the following:
a. Individual accounts cannot be used for business-related transactions. If you’ve been asked to pay an individual, it’s best to tread with caution and query the absence of a business account.
b. Chinese banks often validate incoming payments with the receiver so you must have the name of the company’s primary contact to hand.
c. References are also heavily monitored in China. It is important to assign a reference to your payment and ensure every character is correct. If not it could be rejected and subject to delays.
- Depending on the frequency and size of your international payments, you’ll be subject to some degree of currency risk. It’s worthwhile developing a currency strategy with a specialist.
- If your business has employees in different countries this could mean repeated global payments. Our regular payment and forward contract options may help to protect against the damaging exchange rate fluctuations.
- www.emerico.com.au explains that hiring talent from abroad is a significant investment for both parties. Consider a visa agent with services such as corporate onboarding for a smoother transition and improved work environment.
- For larger businesses with multi-user environments, ensure that you partner with an international payment expert that can mirror any desired authorisation protocol, including segregation of duty and dual verification. Contact us today to find out more.
- And for smaller businesses or independent online merchants, our new eTailing solution can offer the ability to receive an improved exchange rate when you’re being paid from online marketplaces like Amazon, eBay, and Rakuten.
At OFX, we have transferred over AU$84 billion worldwide, helping many businesses gain a foothold in the global market. With offices in key markets around the world, including Australia, New Zealand, Hong Kong, UK, United States and Canada, we offer dedicated, 24-hour support for you and your business.
When the bottom-line matters, OFX it.