If you are a business and you buy goods or services from another country, you need a reliable method to pay.  Paying for international goods or services is not as straightforward as paying domestically.  There are a number of different elements to consider, such as the rate of exchange.

The rate of exchange is, usually, set between your business, the market and your international suppliers.  Once set you can start to set prices for the goods or services that you need to buy.

When you are sending money abroad, you need a solution that works for both your business and your suppliers.  You need to carefully consider how the money will be paid.  You have a number of options available to you.

Your Banking Service

The first point of call is your bank.  Usually, the one that currently serves your business banking requirements.  Historically banks struggled to allow other businesses to pay other international businesses.  However, times have changed, and most banks offer a service to pay for international goods and services.  There may be a charge for these international transactions, so check with your bank first.  As business banking is so specialist, it is advisable that you go into your local branch and speak to the business banking adviser.  They will be the best people to talk to regarding international payments from your business banking account.

Forex Money for Exchange in Currency Bank by epSos .de, on Flickr.  This work is licensed under a Creative Commons Attribution 2.0 Generic License.

PayPal

This is another way your business can make international payments for goods or services.  PayPal offers an immediate transaction to your supplier, and it charges a 2.9% transaction fee.

However, there are limits to the service.  PayPal has a limit of $10,000 for each transaction.  So, if you buy in bulk from your international supplier, this payment method is not for you.  PayPal is also very consumer focused, and it is still working on its business proposition.  The last thing you want is to give your business an amateur feel.

Credit Unions

Companies like Money Gram and Western Union will allow you to transfer money to any country or business in the world.  Just as with most international transactions you will be liable to pay a varying exchange rate for each amount that is paid to your international supplier.

In addition to varying exchange rates from day to day, you will also have to pay the associated transfer fees.  These range from company to company, but on average they will add approximately 10 percent.

Specialist Providers

There is another type of business that can help you pay for goods or services from international companies.  Due to the increase in demand of businesses using international suppliers, specialist providers have come up with a solution.

There are plenty of specialist providers that aim to deliver solutions for businesses that trade internationally.  Many offer varying platforms that enable your business to pay for goods or services globally.  It is worth taking a look at these platforms and any fees attached for the use of their services.

Ultimately, you need to use a service that is right for your business.  Take a look at all the options available to your business before you make any financial commitment.