There are a number of different ways that you can go about making international payments. These can vary in how they work, but also how secure they are, so it is always important you know a little about them before you use them.
The most commonly used international payment method is known as a Letter of Credit. This involves you calling up your bank to issue the Letter of Credit once the details are finalised between you and the other company. The Letter of Credit protects you both, and your bank will send it to the other company’s bank. Once the bank receives word of the shipment, the payment will be processed.
Another method you can use to make a money transfer or international payments is to have what is known as an open account. This is especially useful if you have a close relationship with your clients, since it means you don’t pay until you receive your products/services. For large businesses, this can be a common payment method, since most established businesses are often given the most trust.
The most obvious method of making international payments, of course, is to make an advanced payment. This involves paying for your product before you receive it, which is something both large and small businesses may be more comfortable doing, for many different reasons.
At Pure FX, we provide an international payment service that is both secure and reliable. We can give you all the advice and assistance you need, meaning you concentrate on running your business without worrying about how your international wire transfers are going.