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b2b banking

B2B Pay – Exports to Europe Made Easy

By | Banking, Money transfer

B2B payment simply refers to the business transaction between 2 businesses for the completion of a task. For instance, a company A makes shoes, but to make shoes, it needs leather. Conversely, a company B specialises in the accumulation of leather. In order to fulfil its purpose, company A needs leather from company B so that they can create shoes. The relocation of money in this whole scenario is referred to as B2B pay, or Business to Business pay.

b2bpay-logo

B2Bpay.co is a joint venture of innovators and entrepreneurs from Finland, New Zealand, India, Holland and Brazil. The basic idea of the site is to help exporters receive money. We provide exporters with a virtual bank account inside the European Union and then transfer the incoming money to the exporter’s local bank account in for example India or Brazil.

When an investor wants to relocate money between European countries and India, he or she is required to pay 3 to 6% in terms of charges for the relocation. That does not seem to be the problem for B2B Pay, since B2B Pay transfers money to and from these countries at the rate that is below 1%, which means you save almost 80%.

Transparency about fees

In its entirety, Europe has a cumulative sum of nearly 200,000 banks; all of these banks have variable fee plans, structure and processing times for transactions. Exchange rate plays a vital role in this whole situation, for instance if you receive an amount from Europe, they will only initiate the transaction by using a payment order in their bank. Usually a fixed charge is deducted for the services, but the big trade-off is the exchange rate. The bigger the difference in exchange rate, the bigger the difference in the total amount sent and total amount received. This is a reason in potentially losing hundreds of euros. On the other hand, B2Bpay believes in transparency about charges. They claim to provide the best business in town with the best rates in the market. This can be proved by the fact that their rate for India is only 0.8%. Which means, your costs are reduced by up to 80%.

Annually, more than 100,000 small exporters and businessmen, send goods and provide services to their clients in different parts of Europe. These transactions and deals are carried about in a similar manner, the two parties meet, agree on a deal, sign documents that make the transaction official. The exporter then exports the product or the service to the importer, while the importer returns the favour with money. As expressed earlier, all the payments that the importer makes, are made with his or her local bank, while the exporter bears all the cost related to the transaction.

No more overpaying

The real question is, how does B2B Pay help you in avoiding such circumstances where you have to overpay on transactions to receive your money?

To take care of all the hullaballoo, B2B Pay conducts all necessary checks when it registers you as a customer if you sign-up. Additionally, it also adds information about your bank account number into its database system.

B2B Pay IBAN number in Europe

To receive money in any country associated with the European Union, B2B Pay also provides you with a European IBAN bank account number. An IBAN number is your key to keep track of your transactions and your money. Thanks to SEPA the very IBAN number can be used in all 34 states under the banner of European Union for absolutely free.

When the money arrives in your European bank account, B2B Pay sends it to your local bank, since they already have your local bank account number. Additionally, their fee for this transaction is 80% less than the lowest fee offered by any other service provider of the same genre. This guarantees a saving of 2-5% on the value of transaction. Of-course, this will directly impact on your profit by 10 to 20%.

In conclusion, when you sign up for B2B Pay, you get to take a compliance test only once. It also supports profitable currency conversion and payment to your original bank is so much simpler. Furthermore, it provides you with a European IBAN account number that sets up your European transactions pretty neatly.

https://www.b2bpay.co/

b2bpay logo

exchange risk b2b exporters

Exchange Risk for Exporters and Solutions

By | Banking, Money transfer

Importers and exporters have to keep in mind many issues while making transactions and making money exchange. Even if they want to deal with the transfer of goods internationally they make up their mind with the best strategy aligned with their budget and profit margins. The fluctuations in the exchange rate are a major concern for the person dealing internationally. For example the price you are willing to pay today may rise or fall in the coming next day and it may cause you loss as well. We can see that current economic condition is fluctuating on day to day basis. So it is very difficult to keep track of these changes.

The instability in political conditions may cause you loss in your earnings so it is considered one of the major risks. It can even cause problems in the completion of your contracts. On the other hand government policies may change. We have to carefully look over the factors such as civil disorder, natural disasters, war conditions and local laws as well. Political risk Insurance will help you to analyze and minimize these risks to the maximum level of certainty.

Legal Risk is the risk which you may face when there is a difference and contradiction between the rules and regulations of the two involved countries or companies. For example difference between legal law system and civil law system. The issue entailing the topic that which country law will be applied in case of any dispute. The parties have to reach at a comprisable answer to precede the dealings. Liability laws of products and warranties, these are of great concern. Taxation and misinterpretation of laws can drop down your projected revenues if strategy is not carefully developed. All mentioned concerns in this paragraph comes in legal risks. We can see that how important is to minimize it.

The risk of Quarantine Compliance occurs when you are not aware of Quarantine requirements. You must know that what is allowed and what is not allowed under the quarantine laws of the said destination. If not carefully handled it may lead to the restrictions, fines or damages of goods. So to maintain ongoing good relationship with the party you are dealing with you must take care.

Nonpayment risk often results due to unreliable sources. You are not paid even when you have fulfilled all the requirements of the other party you are in contract with. You must consider the risk and credit terms before getting into the contract. Keep track of the credit reports. Get protected with credit insurance to minimize such risks.

You must manage your risks by thinking critically about all the undesirable outcomes that you can face while dealings. It is the key to success and maintaining profit margins. Management of your risks will prepare you for every kind of situation. You can make your dealings fair and smooth. This will further make your relationship more friendly and reliable. And you will generate loyal customers as a result.

B2B Pay is the solution to some of your international trading problems or money transfers. With B2B Pay you will get you own IBAN number in Europe with which you can collect payments without any charges in thirty four European countries. You can save up to eighty percent on currency exchange. In this way you can increase your profit margins by ten to twenty percent. You can have payment account details on invoices or websites. Exporters face many challenges while trading or currency conversion. The two most common issues faced by the exporters include the time banks takes to deliver b2b payments and the charges of the bank while converting currencies. B2B Pay is lowering these costs to great extent.

By signing up with free B2B Pay services you get compliance checks, flat fee for currency conversion and paying your bank account in home country. IBAN account is provided for your ease, no complicated steps or procedure to follow. No delays in the payment, payments are reached timely meeting your expectations. B2B pay promotes fair dealings no hidden charges like others. Transparency of payments is what B2B pay delivers. Be aware of all the problems you may face in the future and choose a reliable and efficient means of transferring the payments.

B2B payments

By | Banking, Money transfer

The business to business payment is the latest flourishing trend observed among the businesses, especially on the international level. Many companies now prefer to pay directly to the companies they are dealing with, instead of carrying the transactions through any bank. This direct payment method is beneficial for both sides in many ways.

The Unconventional B2B Transaction

The transaction of money in today’s world happens for two reasons;

  • A customer pays some company for their product or services
  • A business pays some other business for their products or services

B2C or C2B

Business to Customer or Customer to Business payment scenario is the conventional payment scenario, where a customer pays money to a firm that just provided its services to the customer. This scenario of payment is pretty well understood and is the bedrock of modern commercialization.

B2B

In the 20th Century, companies decided that to achieve their sales target and to improve their productivity, the customer needs to be satisfied at all costs. Hence, the business became “Customer centric”. In order to satisfy the customers so that they would persist with them, companies had to adapt policies that would help them keep their customers in line. Later on, companies realized that to maximize their profits, it would be better if instead of molding their business around customers, they balanced it between customers and their own needs. Hence, the B2B payments or the Business to business payments were devised. Business-to-business (B2B) means a scenario where one business makes a profitable deal with another. This usually transpires when:

  • A corporate is collecting resources for their manufacturing process, let’s say, a food manufacturer acquiring sugar.
  • A corporate requires the facilities of another for functioning details, say, a food manufacturer paying an accountancy organization to review their capitals.

The general capacity B2B (Business-to-Business) transactions is considerably greater than the capacity of B2C transactions. The chief reason for this is that in a usual supply chain there will be numerous B2B dealings concerning sub modules or resources, and only one B2C transaction

In B2B payments, a written invoice is always a requirement, and the payment is done on the basis of credit provided by the supplier. In business to business payments, buyer pays the cost of payment and paper checks dominate the transaction.

Saving service charges

The banks charge their clients a certain amount of money in terms of service charges. The companies opting for B2B method save these charges, especially in Export to Europe. Also, in many cases, the companies save the percentage of money that the banks keep when making international transactions. B2B payments rule out the third party, the banks in most cases, which lessen the amount of money to be paid to the one doing the transaction of money, thus saving a considerable amount of money.

Increasing profit margin

Having saved the processing fees and other service charges, obviously the companies make more profit in case of Global b2b payments. This directly has an impact on the fiscal budget of the business. The transfer of money from one country to another involves currency exchange.  Huge amounts of money can include huge losses, due to the constantly fluctuating currency rates, when transferred through banks (like Bank Account in Italy), which can be avoided or at least limited to minimum when carrying out B2B payments.

Flourishing personal businesses

The B2B payments encourage personal businesses as they are not as costly as the bank transactions. Individuals can explore ways to deal with banks and other monetary agencies in lieu with their own benefits; looking for the best bargain they have to offer. One can always find a bargain to avoid unnecessary expenses when dealing with other businesses and making B2B payments.

Ethical aspects

The security issues might be a reason for businesses when making B2B payments. But in long term businesses, they actually serve as a strengthening factor between the companies doing business with each other. The trust that they develop over the period of time is not just a corporate matter but also has positive personal impacts on the individuals involved in the process. People tend to be friendlier, affectionate and open with each other.

 

 

B2B money transfer

By | Banking, Money transfer


Receiving money for shipments is not always straightforward for global exporters. Here we give an overview and tips about B2B money transfer. SWIFT transactions can be expensive (3-6%). SEPA payments are free, but only in Europe. Using a service such as B2B Pay can be a way to profit from SEPA.

B2B money transfer: an overview

Money transfer commonly states to one of the subsequent methods of payment systems, Electronic funds transfer, an umbrella term mostly used for bank card-based payments, Wire transfer, an international expedited bank-to-bank funds transfer, Money order, transfer by postal cheque, money gram or others.

The infrastructure that the money transfer is based on had to be made secure and reliable. For that companies use Linux based operating software with multi-level firewall protection and the transactions are encrypted using complex algorithms specifically designed for the purpose.

Business to business money transactions

Banks often charge a processing fee, which can be a flat fee, usually around 30 euro or 50 USD. What banks don’t tell you, there’s a percentage ranging anywhere from 3-6% on top of that, calculated from the mid-market price. Business to business (B2B) money transactions allows businesses to reduce costs, usually by a very major amount, and to simplify payments, because B2B transactions are direct and no banks are included in the middle of the process.

As the modern world has transformed into a universal community, businesses have also evolved internationally. Sending money is not confined to a physical cash dealing between two people because business organisation’s relations are not subjected to a local area or a demo graph anymore, hence the need for the B2B transactions emerged. B2B transactions are important, so that a business can extract the required output result from another business in form of raw materials or manufacturing logistical support.

B2B money transfer

Methods available for B2B transactions

Lately there’s been a rush in the online world including business to business payments. Lots of startups have launched platforms to create simpler business to business money transactions, several companies are grasping and using business to business payments as a method to cut costs and simplify payments, and countless organizations are using them as a way to reduce security risks related to paper checks such as hacked bank accounts, fake checks, or forged signatures.

Global B2B payments methods include Wire transfer, domestic and international ACH, Paper checks, prepaid debit cards and PayPal. Studies show that wire transfer, also known as the SWIFT and credit transfer is the most used method for B2B transactions nowadays. Within Europe SEPA payments are very common to make payments from one European bank account to another.

The new world’s fast track for sending money

In today’s world, people have gotten physically distant but are more connected socially, as the world has morphed into a global village. People have gone farther apart in pursuit of a better career or to support families, transferring money and funds was an issue of the modern day world, which had been resolved by money transfer services from anywhere around the world.

Understanding B2B money transfer

B2B money transfer is the transfer or exchange of any amount of money from one business enterprise to other on the basis of some product that is bought by one. This transfer of money is done through online banking nowadays and therefore requires certain methods to exchange money over the web. The methods used in B2B money transfer depend on the website or the organisation that decides which approach is more suitable.

In global transactions a B2B payment is most often initiated by the importer with their local bank. This means a wire transfer. Consequently the exporter bears the costs for the transaction.

Payment approaches followed

Different transfer and payment methods are available. Many of the firms choose to go for online debits or credit cards. Use of cheques is also done but is very rare outside of the United States, where these things are spelled checks and still used a lot. Usage of online debits or credit cards is the simplest one. While transferring money using online cards, you may be required to provide detailed information about the card, like the card number, name of the card holder, the expiration date on the card, and more. Once you are able to provide such information, the process of money transfer become very easy and quick. 

System of transactions

There are different transfer systems that are usually followed in B2B Money Transfer, these include SET (Secure Electronic Transactions), BBSePay etc. A new concept of ‘e-Invoice’ is also making its way in the B2B money transfer world.

This type of system involves two types of characters i.e. the creditor and the debtor.

  • the creditor transfers some amount of money online or over the internet
  • on the other hand the debtor is the one that will withdraw money from the bank once the creditor has transmitted it

There is an agreement that is made by the debtor with the respective bank that will receive the money from creditor.

Why I should go for online banking?

Online banking today is used vastly by an increasing number of organizations in their businesses as well as by people for their personal use. The reason for using this approach is its ease and simplicity. In the long run these organizations are in a need of a secure system for their exchange of money such that the money as well as the data regarding exchange is kept in a form which is accessible to the organizations involved only, keeping it secure from any third party or unauthorized accessibility.

Free of geographic limitations

B2B lets you enjoy exchange of money on the basis of the services offered between different buyers and sellers worldwide. The basic advantage of deciding to choose b2b online approaches of money transfer is also often the result of an objective of getting oneself free of the limitations faced due to geography.

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Global B2B Payments

By | Outsourcing: an original view

New Look on Global B2B Payments

Global B2B Payments refer to all money transactions or transfers occurring internationally from one business to another. A new trend in global B2B payments is to handle the transaction without the involvement of banks, cutting down the cost and time it takes to process payments.

Apart from fixed fees such as SWIFT charges (around 30$) the currency exchange rate is a huge factor in the costs, sometimes amounting even up to 6% on bigger transactions, costing the exporter 6000$ on a 100k$ payment.

Payment Methods

E-Payment System

This is a well-known method which requires the user to open up an account just like a bank account. These are available for small consumer oriented to Orbian for huge businesses. They charge five percent of the funds transferred by the companies. This b2b money transfer method works fairly well.

Wire Transfer

This method is known from very old times which include money transfers from bank account to bank account. SWIFT/BIC code is required in this case. Bank completes the procedure of transfer. It is considered a safe method but when you are making a huge transfer of money banks involved may charge a high processing fee.

Corporate Credit Cards

These are used by the huge business companies because credit cards are considered expensive. Companies are not much willing to hand over credit cards to their employees. Employees will not also use their personal credit cards for business purposes.

Check

Checks are still very common for payments in the US. For this mode of payment you must have a good relationship with the business you are dealing with. Otherwise it is not a good method for B2B transactions. Like if you are dealing with a company for the first time don’t use this mode of payment. Check is also not a good way of payment for online businesses.

Subsidiary company plus bank account

It’s possible to set up subsidiary companies in other jurisdictions. If you then open a bank account in that jurisdiction you have much more control over the money flow. It requires a big time and money investment in the legal setup and paperwork but this can definitely pay off if you are transmitting millions each year.

Virtual Bank Account

It’s possible to get a virtual bank account in another part of the world. Companies such as B2B Pay and Payoneer make it easy to do this. This can be huge time saver compared to setting up a full fledges subsidiary. It also gives you much better FX rates than normal wire transfers, especially with B2B Pay.

 

 

Holvi: banking for small EU businesses

Holvi: online banking for small businesses in EU

By | Banking

Banking can be quite annoying for small businesses. Setting up a bank account can valuable take time and banks usually charge a lot more to their business account holders than to private clients. The Finnish Holvi plans to change this and profiles itself as the bank for small businesses inside the EU. It’s ready to accept new accounts in Germany, Austria and Finland.  Businesses in other countries can sign up as well but have to accept incomplete translations. Holvi means vault in Finnish.

Vision: online banking for small businesses

The vision is quite extended. Here’s a significant part of it:

There are around 40 million small business owners in Europe. The micro business segment is the fastest growing macro segment in Europe.  Holvi is built from the ground up for these customers –  Europe’s largest underserved sector. One thing they all have in common is that every small business needs a bank account, and financial tools to take care of their business. This is what traditional banks are not offering and we are  enabling the bank account to solve the financial administration and integration seamlessly for them.

 

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