Paying suppliers in three time zones? Meet global business pay

It’s 4 PM in London. You’re hitting ‘send’ on a payment to your Chicago consultant, just as a ‘payment failed’ email arrives from your supplier in Shenzhen, whose workday ended hours ago. Meanwhile, your Frankfurt partner needs their invoice paid before the SEPA cut-off. Sound familiar? It’s a daily juggling act for many UK SMEs trying to keep their global operations running smoothly.

The three-zone headache

Juggling suppliers across time zones – Asia, Europe, and the US – creates headaches for finance and operations managers. Missing cut-off times means delayed payments and straining supplier relationships. Fluctuating exchange rates can turn favourable rates sour within hours, eroding margins. Hidden wire fees, which most new business owners are unaware of, add up, and manual reconciliation of international payments is chaotic. No wonder 49% of financial decision-makers stress over payment timings and security abroad. This isn’t just logistical snags; it’s the human strain of global finance. Each payment isn’t simply one task; it’s a complex dance involving checking the latest exchange rate, ensuring it’s sent before crucial international cut-off times, and then facing the tedious manual reconciliation later. This constant balancing act can consume valuable time and resources, diverting focus from core business growth and further diluting the efforts and energy.

How global business pay works?

Wouldn’t you like to have a single “mission control” dashboard for all your international payments? That’s essentially what a multi-currency payout platform offers. Instead of logging into various bank accounts or struggling with different payment systems, you log into one centralised place. This allows you to hold and send multiple currencies, giving you the flexibility to pay suppliers in their local currency. Crucially, these platforms can help you schedule payouts according to your supplier’s time zone, ensuring they receive funds when their workday is just beginning, not ending. This streamlined approach means you can see all your currency balances at a glance and manage all your international payments from a single point. It’s about bringing simplicity to the global business payments process that’s often overly complicated, allowing you to manage your cross-border transactions with greater ease and control. Nearly one in four (24%) of UK SMEs now use a non-bank provider for international payments, seeking to avoid the high fees and slow transfers of traditional banks.

Quick wins for SMEs

Implementing a smart international payment strategy can unlock significant quick wins for your business:

Lock FX when Asia wakes: Paying your Shenzhen supplier? Here’s the move: skip waiting for London trading hours. Watch those exchange rates live when Asia’s markets open, and snap up your rate the second it looks decent. That way you avoid those annoying overnight swings that chip away at your margin. Your supplier gets paid on time, you score a better rate, and nobody’s stuck playing guessing games with the currency markets
Batch EU invoices in SEPA run: Why pay three separate wire fees to Germany, France, and Spain? With a multi-currency platform, you can queue all your European invoices and send them in one go through the SEPA (Single Euro Payments Area) network. This often incurs a single, low fixed fee, dramatically cutting down on individual transaction costs and streamlining your payment process
Auto-convert USD Friday close: For your US contractors, you can set up automated conversions. For instance, you could arrange for funds to be converted to USD at the close of the US business week on Friday, ready for Monday morning payments. This can help you take advantage of potentially better rates at specific times and ensure funds are available when your US partners need them, without you having to manually intervene every time

These strategies aren’t just about saving money; they’re about saving time and reducing stress, allowing you to focus on your core business activities rather than getting bogged down in payment logistics. Wouldn’t you love improving your craft that inspired you to start a business around it, rather than worry about timely payments? If yes, then it’s time you roll up your sleeves and go through the next checklist

Five-Step Roll-Out Checklist

Ready to streamline your international payments? Here’s a practical five-step checklist to get you started:

Map supplier currencies: Before you do anything else, list all your international suppliers and the currencies they prefer to be paid in. This will give you a clear picture of your currency needs and help you choose a platform that supports all the necessary denominations.
Open multi-currency wallet: Once you’ve identified your currency requirements, set up a multi-currency wallet with a specialist provider. This digital wallet will allow you to hold various currencies in one place, ready for your payments.
Set approval tiers: To enhance security and efficiency, establish approval tiers within your chosen platform. For example, any payment under £1,000 to a known supplier could be sent automatically, while larger payments might require a director’s sign-off on their phone, adding a layer of control and efficiency. With an authorized signatory’s involvement, there is more accountability in the whole process.
Sync to accounting: Integrate your new payment system with your existing accounting software. This will automate reconciliation, drastically reducing manual entry errors and saving your finance team countless hours. Look for platforms that offer seamless integration with common accounting packages.
Review FX strategy monthly: The currency markets are always moving. Make it a point to review your foreign exchange strategy monthly. This means checking your average conversion rates, looking for any new market trends, and adjusting your payment schedule or hedging strategies as needed to maximise savings.

Wrap-up

Taking control of your international payments isn’t just about saving on fees; it’s about building stronger, more reliable relationships with your global suppliers and reclaiming hours of admin time to focus on growing your business. Irrespective of the size of your business, your time is valuable. By adopting a more strategic approach to cross-border payments, you’re not just improving your bottom line – you’re empowering your business to thrive in a global marketplace.

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