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Germany

Variety Of Ways To Export Money To Germany

By | Outsourcing: an original view

There are various ways to export money to Germany. When you are in trading business you have to face situations like having an issue in getting a bank account in foreign land, approving of other party’s default condition and opponent’s reliability. Banks have their subsidiaries in different countries and have smooth relations with foreign banks to facilitate a trader and businessman with money transfer, and global b2b payments.

Ways to transfer

Open account: in this type of money export, goods and services are delivered before the payment is made. Export working capital financing, government guaranteed export working capital programs, export credit insurance and export factoring are few techniques of trade financing. These techniques are helpful in mitigating the non-payment risk.

Documentary collection: sender and receiver’s banks are involved in authorizing the money transfer. To export money to Germany, remitting bank that is exporter’s bank allows payment collection and sends all the necessary documents to collecting bank that is importer’s bank. So money exports through banks in this funds transfer technique. Documents are involved in it like document against payment, document against acceptance specifying the amount and time of payments. The drafts of such kind are reasonable as compared to get letter of credits.

Cash in advance: to avoid credit risk, being an exporter of money you must opt for cash in advance. In this payment is received before the goods are delivered or services are rendered. Wire transfer, credit card and payment by check are the three basic methods of cash in advance. Wire transfers is a trustworthy method of exporting money to Germany.

All the above types of money export to Germany are reliable and good, and equally good for Export to Europe. People exercise different techniques of each method to make sure that they get what they want. However, cash in advance is the type that attracts least buyers. Paying in advance invoke various questions about the credibility and reputation of the exporter.

Choose a wise method and technique of money export to Germany to make sure you don’t have to suffer a loss. Money matters are crucial and require great thoughts, skills, intelligence, experience and instincts to make a right decision.

SEPA payments

SEPA payments

By | Banking

A Brief Overview of SEPA payments

SEPA payments are used by the countries within European Union (EU) as well as some other countries outside EU but to which Euro bank transfers are supported. SEPA stands for Single Euro Payments Area. It can be described as a system that is initiated in Europe. It is used to transfer euro money between different banks in Europe.  SEPA supports the transfer of Euro across the border and it is seen to transfer Euro within the area which is similar to the domestic transfer you do within your country.

How SEPA Based Banks Work?

If you are planning to exchange money from any bank which is based in SEPA jurisdiction then it can be said for sure that you will not bear any extra costs than the regular transfers that are done locally. For most businesses and individuals it is considered as a cost-free option.

This money is usually received to another EU IBAN account within two days or even less. The receiving bank may or may not charge receiving cost depending on the policies of the respective bank.

All SEPA countries use the IBAN numbering scheme.

Why should I prefer using SEPA based account?

  • Fast, Easy & Secure:

SEPA has made the money transfers very easy within the euro area. The money that is being transferred by the SEPA based bank accounts is very fast and very easy indeed. In addition to this, the transfer of money by SEPA is even more secure than the regular bank transfers. Improvement is observed in the money that is transferred by bank accounts when they stand their basis on SEPA.

  • Free of complicated steps for new account creation

Usually it is observed that SEPA provides more ease when you are living in any country within the euro area for short term or long term basis. You will not need to create new account there or go through critical or hectic steps for new account creation in a new country rather you can use your old account – the one from your home country.

Furthermore, if you are on a trip to any euro country then SEPA can be found very helpful in getting the required money from your home country. In addition to providing your required money from your home account it may also offer an array of other services.

The SEPA (Single Euro Payments Area) Initiative and Its Advantages

Europe is the second biggest continent on Earth; it roughly includes about 40 nations. These nations are highly industrially developed and so are its people. A few years back, a group of European heads of states sat together and decided to amalgamate these European countries into a single union, called, “European Union”. EU includes 35 countries, which means, not all countries in the continent of Europe are the member of this European Union.

Due to different policies of EU, most of the aspects within these countries have improved. One of these is travelling, now you need to be a member of EU and you can travel throughout the member nations without hesitation. Another aspect of this merger is the currency. The European Union has been successful in introducing a general currency that has united all the member nations on a single platform, known as “Euro”.

SEPA (Single Euro Payments Area) is an initiative by the European Union to transfer monetary funds from one bank account in a member nation to another without much ado. SEPA payments are rapidly becoming the norm for the common people of the member nations because it relieves them off all the hassle for currency conversion, tax issues and prostration to laws of different countries individually.

SEPA payments are a great example of how to reduce the annoyance that the customers encounter while banking. The institution of SEPA payments ought to escalate the concentration of rivalry among banks for clients from corner to corner of different borders within the member nations of EU. For customers and administrations SEPA means low-priced, extra resourceful and more rapid payment transmissions when transferring euros from one EU member to another.

The goal of this initiative is to advance the competence of cross-border outlays and turn the disjointed nationwide markets for euro payments into a solitary internal one. SEPA will permit consumers to make euro expenditures without cash to any person situated anyplace in the zone, by means of a sole bank account and a lone set of payment tools.

 

Sources:

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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