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Streamline import and export business in transferring money globally

Business Finance

Streamline import and export business in transferring money globally

DNBC Team DNBC Team

Jan 22, 2024

Table of Content

International money transfers open the door to global business opportunities. They are a crucial backbone of the import and export business. They help payments between buyers and sellers.

But, most businesses are facing challenges in import export business. In a 2019 survey by the International Chamber of Commerce, 68% of businesses reported difficulties with international payments. This problem affected all industries. This challenge also extended to the import-export industry.

The article shares some challenges faced in export and import business. It also suggests how to overcome these challenges.

International money transfer challenges in import export business

Cost and fees

Transaction fees

The fees in bank transfer and foreign exchange (1-3% or more) are one type of cost. Another type of cost is the fees charged by intermediary banks and payment gateway. All can add up for frequent transactions or large amounts.

The fees in bank transfer and foreign exchange (1-3% or more) are one type of cost.
The fees in bank transfer and foreign exchange (1-3% or more) are one type of cost.

Exchange rate fluctuations and hidden charges

The hidden fees add to the cost of international payment. The exchange rate fluctuations are another factor that increases the cost. These factors can inflate the cost up to 10%. This affects the profitability of import-export transactions.

Exchange rates can change day by day, impacting the final amount received or paid.

Some transfer services may have hidden charges for international payments. These charges include intermediary bank fees or correspondent bank fees. It can involve more costs and complexities.

Speed and efficiency

Processing times

International transfers can take several days or even weeks, depending on the sender’s and receiver’s banks, intermediary banks, and chosen methods (wire transfer, ACH, etc.).

International transfers can take several days or even weeks.
International transfers can take several days or even weeks.

This can delay payments and impact your cash flow.

Documentation requirements

Documentation procedures cause delays in about 40% of cross-border payments to SMEs. Emerging markets often deal with these payments, affecting smaller import-export businesses.

Banks and other financial organizations need extensive documents for international transfers. It includes invoices, bills of lading, and trade finance documents. Such requirements contribute to the complexity of cross-border financial transactions. It is time consuming for preparation.

Compliance and security

International regulators need strict AML and KYC regulations to prevent financial crimes. Thus. transactions should be in line with these regulations, including further information and documents.

International regulators need strict AML and KYC regulations to prevent financial crimes.
International regulators need strict AML and KYC regulations to prevent financial crimes.

Threats in online transactions

Fraud and crimes online are popular in international financial transactions. Implementing multi-factor authentication and secure communication protocols are important. These measures play an important role in protecting your financial information. They act as a barrier to prevent unauthorized transactions. They can also ensure the integrity of your financial data.

Other challenges

Limited access to services

Access to international money transfer services can be limited. This depends on the locations and destinations of the transactions.

Cultural differences

Understanding cultural differences in business practices is important. It helps smooth transactions and builds trust with international partners. Failure to these differences may hinder successful interactions in the global business.

Solution to import export business in international transfer

Navigating international transfers in the import-export business can be challenging. However, several solutions can help streamline the process.

Here are some potential solutions to consider:

Cost and fee reduction

Compare fees

Fee analysis is necessary in different banks relevant to money transfer services. Furthermore, negotiation for bulk discounts for frequent transactions is important.

Explore alternative methods

You need to consider peer-to-peer platforms, or fintech-based solutions for lower fees.

Thinking of opening multi-currency accounts for holding and managing funds in different currencies. This approach not only reduces conversion fees but also simplifies transactions. It provides more flexibility in international financial dealings. It also enhances your total financial management.

You can choose alternative methods to transfer money internationally.
You can choose alternative methods to transfer money internationally.

Software and tools for businesses of import and export can automate repetitive tasks and manage compliance. They can also optimize transfer processes and save time and money. This approach allows businesses to focus on strategic aspects of international trade.

Strategies of preventing risks

You should use forward contracts, or currency exchange hedging tools to manage exchange rate fluctuations.

These financial instruments provide a proactive approach to manage currency risks. They help to reduce the impact of currency fluctuations on the business.

Choose faster options

You can choose options for express transfer services or real-time payment solutions for urgent transactions. These services will help your transaction in time . That meets important deadlines in business environments with high speed.

Streamline documentation

Partner with platforms offering simplified documentation processes. You can work with trade finance professionals handling complex paperwork.

Partner with platforms offering simplified documentation processes.
Partner with platforms offering simplified documentation processes.

Digital solutions

You can use online platforms for faster initiation, tracking, and completion of transfers. Automated processes can also speed up these tasks.

Compliance and security:

You need to stay updated on AML/KYC regulations for both your and your partner’s countries. This will help you ensure compliance and avoid delays in your transactions.

You could consider services with strong security measures for your transactions. These measures include multi-factor authentication, data encryption, and fraud prevention protocols.

Trade finance specialists

Partner with finance experts to support regulations and documentation requirements. This will ensure optimal compliance and security for your transactions.

DNBC Financial Group – a solution for import and export business in money transfer

DNBC Financial Group stands as a comprehensive solution for import and export businesses. It offers seamless money transfer services to streamline financial transactions globally.

DNBC provides a reliable platform in financial transactions. DNBC offers tailored solutions to meet the needs in import and export businesses. These solutions ensure efficient and cost-effective global fund transfers.

DNBC Financial Group serves as a trusted partner for import and export businesses. It can handle complex paperwork, diverse currencies, and smooth transactions.

DNBC Financial Group is your trusted provider in international money transfer

Note: The content in this article is for general informative purposes only. You should conduct your own research or ask for specialist advice before making any financial decisions. All information in this article is current as of the date of publication, and DNBC Financial Group reserves the right to modify, add, or remove any information. We don’t provide any express or implied representations, warranties, or guarantees regarding the accuracy, completeness, or currency of the content within this publication.