Overseas Supplier Payment Strategies: Save Costs & Secure Your Cash Flow!

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If you are looking for the most profitable export-import payment methods, this article breaks down the best options to keep your business running smoothly and maximize your profits.

Methods for Paying Overseas Suppliers

Choosing the right method for cross-border transactions can save you millions of Rupiah every month.

1. Wire Transfer (SWIFT)

The traditional method via conventional banks. While secure for large transactions, Wire Transfers often carry “hidden fees” from intermediary banks. Furthermore, bank sell rates are usually much higher than market rates, making your bills more expensive than they should be.

2. Letter of Credit (L/C)

This offers high security as the bank acts as a guarantor. L/C is highly recommended for export-import payments with new partners or for very large amounts to mitigate risk. However, the administration is complex, time-consuming, and involves bank commission fees.

3. Cross-border Fintech Platforms (Pay by Card)

The most innovative solution trending among SME owners and importers. Through Transfez’s Pay by Card feature, you can settle supplier invoices using a credit card (VISA, Mastercard, JCB, or Amex), while the supplier receives the funds as a standard bank transfer.

Advantages: Transparent exchange rates, real-time processing, and most importantly, the supplier doesn’t need a card machine (EDC) because they receive the funds directly in their bank account.

Read Also: Practical Ways to Handle International Invoice Payments: Save on Admin Fees & Avoid High Exchange Rates!

Guide: Paying Suppliers Using Pay by Card

Want to settle overseas supplier payments without draining your cash balance today? Just follow these simple steps in the Transfez app:

1. Select Pay by Card Menu: Open the Transfez app, go to Transfer & Pay, then click Pay by Card.

2. Upload Official Invoice: Upload your supplier’s bill as a requirement for secure and valid transaction verification.

3. Fill Supplier Account Details: Enter the supplier’s overseas bank account number. Transfez supports transfers to over 70 countries.

4. Choose Credit Card: Enter the details of the credit card you wish to use as the funding source.

5. Confirm & Pay: Check the total service fee (only 2% for international) and the exchange rate. Click pay, and the funds are immediately processed to the destination account.

Expand Your Business Reach: Global Corridors

Pay by Card allows payments to many strategic countries, including:

• Asia: Thailand, Malaysia, India, Hong Kong, Singapore, Japan, South Korea, Philippines, Pakistan.

• Europe: UK, Germany, Netherlands, France, Belgium, Italy, Lithuania.

• Americas & Oceania: Australia, Canada.

• Special: China (via AliPay).

Using Pay by Card (PBC) provides cash flow flexibility by allowing you to utilize your credit card’s billing cycle to extend payment terms, thereby maintaining company liquidity.

Read Also:Pay Vendors Using a Credit Card? Here’s How It Works and Why It’s More Efficient

Smart Ways to Save on Supplier Payments

Paying bills doesn’t always have to be a heavy financial burden. With the right strategy, you can gain extra benefits from every transaction:

• Turn Invoices into Free Vacations: International trade payments are usually large. Use Pay by Card to “convert” those bills into reward points or air miles. Unlike regular bank transfers, this adds value to every transaction.

• Exchange Rates Close to Market Price: Transfez offers competitive and transparent rates. Even a small difference in the exchange rate can significantly impact your profit margins on large transactions.

• Buy Time with Cash Flow Management: By utilizing your credit card limit, you can keep your cash for urgent operations or inventory. You fulfill your obligation to the supplier today, but you only pay the bank when your statement is due (usually offering up to a 45-day tenor).

Understanding smart export-import payment methods is a vital part of a sustainable business growth strategy. Don’t let expensive admin fees or high exchange rates erode your profits. With Transfez, you have full control to pay overseas suppliers more practically, securely, and economically.

Download the Transfez App Today

Transfez helps you send money abroad quickly, affordably, and securely. For businesses, Transfez Bisnis simplifies international vendor payments. Whether you’re paying overseas staff, suppliers, or supporting a family member studying or working abroad Transfez is here to help.  Available on Android and iOS.