Need to pay a supplier, freelancer or partner in another country?
It’s inevitable in any expanding business. You discover a fantastic supplier from overseas, negotiate a price that works, and then…
You have to actually get the money to them.
Here’s the problem:
Most businesses still experience slow, messy and expensive international payments. Funds get delayed in transit. Fees are deducted throughout the process. And your supplier has to wait…wondering if they’ve even been paid.
Late payments damage trust. Fast payments build it.
The positive news? Bank-to-bank payments allow you to pay almost anybody, anywhere, directly into their bank account.
Here’s how it works…
Here’s What’s Inside:
- What Are Bank-To-Bank Payments?
- Why Paying Suppliers Abroad Is So Tricky
- Why Bank Transfers Are Still King
- 5x Steps To Pay Anyone, Anywhere
- Common Mistakes That Cost You Money
What Are Bank-To-Bank Payments?
Bank-to-bank payments are exactly what they sound like.
The money is transferred from your business account to their bank account. No cheques. No cash pick-ups. No fees for cards either way.
For businesses, sending money directly to a bank account is the easiest and most reliable form of bank-to-bank payment to send abroad. Your supplier doesn’t have to download a new app or wallet. They simply have to have a bank account — which every legitimate business should already have.
It really is that simple.
You can use bank-to-bank payments to pay:
- Overseas suppliers and manufacturers
- Freelancers and remote staff
- Agencies and contractors
- Partners and distributors
Pretty handy right?
Why Paying Suppliers Abroad Is So Tricky
OK, but if bank transfers are easy… Why are so many businesses bad at it?
Lots of international payments still use the “traditional” route. Your money jumps from bank to bank until it reaches your supplier. Hops cause delays. Some hops skim a little off the top too.
Facts don’t lie. Per the most recent G20 Benchmarking Report, only 35.4% of cross-border payments reach their destination within one hour. The target is 75%.
That’s a huge gap.
Here’s what that means for your business:
- Slow payments — your supplier may take days to receive payment, delaying your orders.
- Hidden fees — small amounts are deducted throughout the process, so your supplier receives less than what you sent them.
- Bad exchange rates — can lose you more money than the fee itself without you even noticing.
- No tracking — once it’s gone, you can’t see where it is.
Fee is another issue. Almost one in five payment rails globally still charge more than 3% per transaction.
When you are paying suppliers abroad every month, those costs add up fast.
Why Bank Transfers Are Still King
And here’s the kicker…
Despite the rise of new peer-to-peer payment apps, businesses still overwhelmingly prefer bank transfers. Bank transfers are projected to maintain 48.75% of the market for cross-border payments until 2026.
Why should they use a bank account? Because large transactions need a safe place to live. And bank accounts are the one thing that nearly every business utilizes already.
Think about it:
Would you rather email a new supplier asking them to download an app they have never heard of? Or simply ask them for their bank details.
Exactly.
Newer payment companies have also sped up bank- bank payments while reducing costs associated. You get the security of a bank transfer without the dreaded wait.
That’s a win-win.
5x Steps To Pay Anyone, Anywhere
Alright, now for the good stuff. If you take these 5 steps, you too can pay suppliers overseas like a champ.
Step #1: Collect The Right Bank Details
This is where most payment problems start.
Ask your supplier for their name (name on account), bank name, account number and bank code. Bank code will depend on country. It can be a SWIFT/BIC code, IBAN, Sort Code or Routing number.
One misplaced number could direct your funds elsewhere or back to you. Triple-check before you send!
Step #2: Look At The Exchange Rate (Not Just The Fee)
A “zero fee” transfer isn’t always cheap.
A lot of providers disguise their profit within the exchange rate. That’s why you should always check the rate they offer you against the actual mid-market rate from Google. The smaller the difference, the better the rate.
Speed tip: Submit the same amount through 2x or 3x before sending. Takes a minute and the difference is shocking!
Step #3: Pick The Right Payment Provider
Your high street bank can wire international transfers. However, it isn’t always the quickest or least expensive way.
Look for a provider that:
- Shows the full cost upfront
- Gives you a clear delivery time
- Lets you track every payment
- Covers the countries you pay most often
Step #4: Send A Small Test Payment
Paying a new supplier for the first time? Send a small amount first.
Wait until they say it has arrived before you send the remainder. It only takes an extra couple of minutes and could prevent a headache from expanding to colossal proportions.
Step #5: Keep A Record Of Every Payment
Keep the receipt, exchange rate and reference number for every transaction. Include a reference which easily identifies you, such as an invoice number.
Bonus: This makes tax time and bookkeeping much easier too!
Common Mistakes That Cost You Money
Even smart business owners slip up here. Watch out for these:
- Wrong currency — if your supplier needs to change it, they may take a fee and bill you for the difference.
- Disregarding fraud alerts — just because a supplier emails you “new” bank information, call them to confirm. This is how most payment scams are perpetrated.
- Leaving it to the last minute — weekends and public holidays slow down payments. Deliver early to ensure your supplier gets paid on time.
Tip: Always utilize a licensed payment processor. It safeguards your funds and keeps you compliant.
Time To Hit Send
Sending money abroad used to be a pain. Now it can be fast, inexpensive and painless.
Bank-2-bank payments allow you to pay suppliers, freelancers and partners directly into their bank account from anywhere in the world.
To quickly recap:
- Get the full, correct bank details
- Compare exchange rates, not just fees
- Choose a provider that is clear on cost and speed
- Send a small test payment first
- Keep a record of everything
- Rinse and repeat
Do this and paying international suppliers will become one hassle-free business operation among many. Your suppliers receive payment quicker. You save money. And life is good.
