Swiss SMEs: How to optimize your foreign supplier payments

For a Swiss SME engaged in international trade, paying supplier invoices in foreign currencies (Euros, Dollars, Pounds) often represents an invisible financial drain.

Many companies simply make standard international transfers from their Swiss bank account. Without knowing it, they incur inflated exchange rates and hidden transfer fees that directly cut into their profit margins.

Here is a comprehensive guide to understanding these costs and discovering solutions to drastically optimize them without disrupting your accounting processes.

1. The problem with traditional bank transfers

When you pay a 50,000 EUR invoice to a European supplier from your CHF account, your bank performs a double operation: a currency exchange, followed by an international transfer (SWIFT or SEPA).

Hidden margins on the exchange rate

Traditional banks almost never apply the true market rate (the interbank rate). They add a margin (markup) that generally varies between 1.5% and 3% depending on the institution and the volume. This additional cost is not clearly displayed as a "fee"; it is directly diluted into the exchange rate offered to you.

💡 CONCRETE EXAMPLE OF CASH FLOW IMPACT

For the purchase of 100,000 EUR of goods using a CHF account:

At the true market rate: The invoice costs you approximately 95,000 CHF.
With a traditional bank (2% margin): The invoice costs you 96,900 CHF.

Result: You lose nearly 1,900 CHF on a single transaction, solely through hidden exchange fees.

Flat transfer fees

In addition to the margin on the rate, banks often charge processing fees (issuance fees, correspondent bank fees, exchange commissions) which are added to each transaction, especially if the payments go through the SWIFT network (outside the SEPA zone).

2. Paying in CHF or local currency: what to choose?

To avoid managing currencies, some Swiss SMEs ask their foreign suppliers to be invoiced directly in Swiss Francs (CHF). This is often a false good idea.

If your supplier (for example, in France) agrees to invoice in CHF, they will assume the exchange rate risk themselves. To protect against market fluctuations, they will inevitably add a significant safety margin to the total amount of their invoice.

The best practice: Ask to be invoiced in the supplier's original currency (EUR, USD, GBP). It is up to you to manage the conversion, as you are in a better position to find a competitive financial intermediary and control the exchange rate.

3. The solution to optimize your supplier payments

Today, it is no longer necessary to use your traditional deposit bank to make your international payments. Using a FinTech company specialized in currency exchange allows you to achieve major savings while securing your operations.

B2B Comparison	Traditional Swiss Bank	Specialized Service (e.g. ibani)
Margin on the exchange rate	Up to 3% (Often hidden)	0.4% maximum (Decreasing)
Opening / Management fees	Yes (Flat commissions)	Zero hidden fees
Dedicated transit account	Often complex to open in multi-currency	Personal and free Swiss IBANs
Rate control	Exchange at the processing day's rate	Manual mode available to lock in a favorable rate

4. How the ibani business account transforms your processes

To support Swiss SMEs, ibani offers a "Business" solution designed to integrate frictionlessly with your current accounting habits.

One Swiss IBAN per supplier

The operation is incredibly simple. As soon as you need to pay a new foreign supplier, ibani generates a free, dedicated Swiss IBAN for this beneficiary. You simply record this IBAN in your accounting software or your standard e-banking.

When you make a CHF transfer to this IBAN, the funds are automatically converted with ibani's minimal margin, and then sent immediately to your supplier's foreign account.

⚙️ FINMA SECURITY AND COMPLIANCE

As a regulated financial intermediary based in Geneva (affiliated with the SRO VQF, recognized by FINMA), ibani guarantees strict banking security standards for the protection of your company's funds.

Reduce your exchange expenses today

Does your company regularly transfer money in different currencies? Stop paying hefty charges to your bank.

Our service allows you to drastically reduce your cross-border exchange costs, without changing anything in your internal accounting processes.

Discover the Business Solution