Best way to pay suppliers in Europe: A guide for UK businesses
Article
Euan Robb
Introduction
When conducting business across Europe, one critical element that can dramatically affect your profitability and operational efficiency is how you handle supplier payments. With the continent's diverse range of currencies and regulations, finding the most efficient and reliable method of payment is paramount for UK businesses looking to maintain a competitive edge in the international market.
This comprehensive guide will explore the best ways to pay suppliers in Europe, highlighting the benefits of using Equals Money's multi-currency account for your global transactions.
Bank transfers: While reliable, traditional bank transfers often involve high fees and unfavorable exchange rates, especially for currencies not included in SEPA.
Cheques: Mailing cheques is outdated, slow, and incurs additional handling and processing fees.
Cash: Not only impractical but also risky for larger transactions.
These methods, although tried and tested, fall short on efficiency and practicality, particularly when dealing with multiple currencies and suppliers.
Modern payment solutions
Technology has revolutionised the way businesses operate, including how they manage international payments.
Online payment services: These platforms can offer lower fees than traditional banks and often provide more competitive exchange rates. However, they vary widely in terms of cost, speed, and reliability.
Multi-currency accounts: An increasingly popular choice for businesses, multi-currency accounts allow you to hold, manage, and send various currencies all from one place, allowing strategic conversion and the ability to avoid conversion fees.
Equals Money's multi-currency account – a game changer
Equals Money offers a multi-currency account that stands out in the European payment arena for several reasons:
Competitive exchange rates: Equals Money offers competitive exchange rates for 140+ different currencies, allowing your business to get the most out of every transaction.
Multi-currency IBAN: Equipped with a multi-currency IBAN, say goodbye to multiple sets of details and accounts dedicated to a single currency, Equals Money's multi-currency account supports 38 different currencies to manage, send, and receive funds in, all from a single centralised account and without conversion.
SEPA and SWIFT transfers: With access to both SEPA and SWIFT, ensure that your payments are quick and reach their destination securely.
Safeguarded funds: Protection of your finances is paramount. Equals Money protects customer funds via safeguarding, holding them in specially designated safeguarded bank accounts, separate from their other assets.*
Tech integration: Equals Money's account interfaces seamlessly with accounting software (Xero), making financial management simple.
Exceptional customer support: Navigating international payments can be complex, but Equals Money offers dedicated customer support and account management to assist with any queries or issues.
Best practices for paying suppliers in Europe
Understand the currency needs: Know the preferred currency of your suppliers and the potential benefits of transacting in their local currency.
Monitor exchange rates: Use Equals Money's tools to monitor exchange rates and execute transactions at the most opportune time.
Maintain good communication: Always keep open lines of communication with your suppliers about payment schedules and methods.
Conclusion
Paying your suppliers in Europe doesn't have to be a daunting task. By leveraging modern financial technology like Equals Money's multi-currency account, you can simplify your payment processes and maintain robust international supplier relationships. Embrace the future of business payments and give your UK business the global edge it deserves.
