Currency Exchange for BusinessesHow to save on exchange and transfer fees & commissions
No matter what domain of activity your business is involved in, you probably pay bills and send invoices abroad every month. Raw materials, finished or semi-finished products, services and so on, there can be many reasons in the daily life of a company to make transactions with foreign customers or suppliers.
If you go to your usual bank to make such transactions, then ibani.com can help you save big money on your currency exchange and bank transfer costs. In this article, we go through the main cases when our service can be valuable to your business and why.
Paying Bills Abroad
When you use your regular bank to make a transfer in another currency and/or in another country, the fees and commissions that it will charge for the currency exchange and for the transfer itself are not only opaque but can quickly represent significant amounts of money.
At ibani.com, the system we have designed simplifies as much as possible the exchange and transfer steps, and avoids this way costs that have no reasons to exist. The diagram below shows the differences between the paths taken by your money when it goes through a bank or through ibani.com:
|CHF Sent||EUR Received||Margin||Fee|
Note: The exchange rates of other banks are calculated using an average of their margin taken above the market rate on a 30-days sample.
Getting Paid From Abroad
Our service and its benefits are also valid in the cases when your business creates invoices for foreign customers. When these customers pay your invoices, a currency exchange will happen at some point (unless your customer holds a sufficient amount of your currency in reserve) and generate costs for your client and potentiellaly for your company as well.
To avoid these costs, the same principle as above applies with ibani.com:
- We give you an IBAN number in the currency of your customer.
- Your customer makes his/her payment to that IBAN.
- ibani.com receives the transfer in your customer's currency, and exchanges it in your currency.
- ibani.com transfers the converted amount directly to your bank account.
Exchanging Currencies Between Your Bank Accounts
It also frequent for a company to own with its bank several accounts dedicated to several currencies (euros, dollars, etc.) or a single multi-currency account. There are also many reasons to convert and transfer the totality or part of a currency toward another, usually due to variations of a currency's exchange rate.
In such a case, if you transfer from your e-banking money from an account to another (for instance euros from your EUR account to your USD account) then your bank's exchange rate and margin apply, which can be costly as we have seen above. Once again, you can use ibani.com to avoid these fees and save on the currency exchange as this diagram shows:
No Reference Numbers Needed
For each beneficiary of your payments, we create a unique IBAN number that is dedicated to that beneficiary. When money is sent to that IBAN we know to who it is supposed to go to and therefore we don't need you or your clients to enter any reference number with the transfer.
Of course, if you wish to you can still enter any reference number from your internal system or any other communication about that payment, which we will transmit to its beneficiary.
Payment reference numbers being unnecessary with our system, the risks of typos, errors and payment failures are simply eliminated!!
Easy To Use
To use ibani.com, you just need to create an account on our website. Neither your suppliers nor your clients need to be ibani.com customers for you to use our service.
If not already done yet, create your account now. It's free and without commitment!
Unique IBAN: More Simple For Your Accounting
Still thanks to our system of unique IBANs dedicated to each beneficiary, you can easily track the details of your transfers and their beneficiaries from your regular e-banking for the needs of your accounting or your financial reporting.