Tag

B2B payments

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 Transfer Fees

By | Money transfer, Outsourcing: an original view

In the corporate world, there are two types of deals, namely B2C and B2B.

B2C

A B2C transaction, or simply, a business to customer transaction is exactly what it seems. It is the transaction that takes place when a certain business deals with a particular person or a group of persons. These “dealings” can be anything from selling and item, or buying rights to a book, providing services or requesting services. Simply put, these are the types of transactions that are conventional and comprehensive. B2C transaction does not necessitate any 3rd party involvement, because the main objective of the business is to deal with customers.

B2B

A B2B transaction, or in other words, a business to business transaction is a term that is used to describe the dealing between a firm with another business in times of procurement. As in, consider a firm, “A”, that manufactures shoes, needs the raw material to build the shoes from. In such times, they contact a third party (referred to as third party because they are not one of the pillar of basic business transaction, i.e. Businesses and Customers). The other business (that works to collect leather), “B”, deals with “A” and supplies them the necessary materials. Of course, B2B transfer fee is involved.

Now these business might be far and wide throughout the world, so b2b transfer fees vary, hence the concept of monetary exchange plays its hand.

FX spread

FX spread, or, “Foreign Exchange Spread”, is the difference between the prices a trader receives when he sells a currency to the market, with the price he has to pay to buy currency from the market. This spread, assists massively in determining the value of one currency in a country that it is not native to.

SEPA Payments

SEPA payments are a great way to settle B2B payments throughout Europe, since it is free. All it takes is the creation of a European account with B2B pay, this gives you the facility of sending euro payments in and out of Europe for not even a single dime.

 

Exporting to the EU

By | Banking, Money transfer

In primitive times, men thought they can fall off the earth if they reach the edge. They also thought that India was in west (Hence, the west-indies). Some men thought it is impossible to fly. Guess what? Everyone was proved wrong because of people who believed in “seeing is believing”. Travelling is the basic element of life, people made discoveries and shared their culture with people from different parts of the world by travelling to the nooks and corners. Today, the world is a global village because of this. Similarly, the European Union (EU), an alliance of more than 25 states of the continent of Europe, has paved way for people from different parts of the world to export their products and services to Europe and continue the historical trend of spreading culture.

Conditions for Exporting to the EU

  • 3 years history of business (minimum)
  • There should be no conflict of interest
  • The owner must possess technical and professional capability
  • Financial and economic stability is a must
  • Must not be a legal convict, fraud, tax scammer and other malpractices
  • Proof of payment of social security obligations
  • A bunch of references

Bank Account in Europe

For exporting to the EU it can be useful to have a European bank account in any one of the 25+ member states of the Union. Once you have an account, everything from then on in, is a piece of cake. Exporting to the EU is not only a way to spread culture, but it is also a plus to spread your financial prowess and status. Most companies from developing countries consider it a step up if they export to Europe.

Exporting without Moving

You can also export to Europe without ever moving to the continent by setting up 3rd party management like “Entity asset management”. Services like these are a B2B service that requires a B2B payment, but they relieve you off the stress of moving back and forth to Europe.

Sending Money to Finland: an overview

By | Banking, Money transfer

Due to the advancement in technology, sending money to Finland is now a piece of cake. Finland is a northern European country that shares its borders with Sweden, Norway and Russia. There are numerous ways through which people can transfer money to Finland and they are discussed below.

Sending Money to Finland with SWIFT

SWIFT stands for “Society for Interbank Financial Telecommunication”. SWIFT facilitates the easy relocation of money from one place to another not by actually moving the money, but by sending and receiving financial messages between the buyer and the seller. Then, the actual relocation of money takes place through wire transfer. Finland is a strong advocate and user of the SWIFT system for the relocation of money. To facilitate the process of sending money to Finland or to receive from there via the SWIFT money transfer, the first thing to do is to determine the SWIFT code. This is a typical format of Bank Identifier Codes (BIC) and it is an exclusive code for a specific bank. A Swift code usually contains 8 to 11 digits. A typical SWIFT code looks like:

AAAA BB CC DDD

E.g.

JSAS KX F1 A41

Sending Money to Finland with SEPA

The usage of the SEPA method is based on the fulfilment of certain conditions. To transfer the money, it is necessary to enter the recipient’s account number in the IBAN format, it is done to route to the correct country without any failure. “Nordea”, a financial service company, offers several alternatives for SEPA payments. Solutions centered on file transmissions allow payments to be entirely computerized, when the amount of payments is extraordinary.

B2B money transfers to Finland

Western Europe is one of the most advanced places when it comes to the use of electronics and computers for financial matters. Especially in Finland, where the government has made it mandatory to transfer all procurement efforts online. Basware, a mega conglomerate for B2B payments has just signed an agreement with an unnamed company to facilitate the process of sending money to Finland. This has created a window of opportunity for many Finns living in foreign countries to send money to their families and loved ones with great ease.