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Quinn Askeland
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jonnofoot, post: 196988 wrote:
Hi All

Just want to know what the best/cheapest payment method is when paying for products to overseas suppliers?

I have to make a direct bank transfer and want to know what methods others use to do this?

Cheers
Jonno

Hi Jonno,

It is exciting times to be asking that question! That said, especially for a business I believe it is wise to look at a number of factors beyond just fees and rates.

For example, for many businesses regular transactions may need to be made and these can be done for you automatically. You might also benefit from forward contracts, which enable you to lock in rates for up to three years in advance – this can help significantly with cash flow. (Especially with the Aussie dollar at these levels) Furthermore, some services are just phone based – others internet based. There are also minimum amounts for each company.

At a base level though, I recommend at least choosing a company with an office in Australia and ideally an office in the country you are dealing with as well (if possible). Money transfers are a volume game so you are more likely to get a good rate if they have an office here. Besides this, you are protected by Australian regulations if they have operations here.

I have been compiling a list of all the major companies in Australia with the important things I think you should look out for and I am finding that there is a great amount of choice compared to even just two years ago and the great news is that if you have a good idea of what you want you can not only save thousands of dollars relatively easily but also make doing business overseas simpler.