Paying for overseas invoices

Discussion in 'International Business' started by J.McVeigh, Nov 14, 2018.

  1. J.McVeigh

    J.McVeigh UKBF Newcomer Free Member

    28 3
    Morning All,

    We have an invoice to pay from the Czech Republic. We have been asked if we want the invoice in pounds or Euros. In Czech Republic the currency is the Koruna.

    My question is, what is the most cost efficient way to pay this invoice. Should we do it through our bank? In pounds? In Euros?

    Thanks,

    James
     
    Posted: Nov 14, 2018 By: J.McVeigh Member since: Mar 20, 2018
    #1
  2. Nochexman

    Nochexman UKBF Enthusiast Free Member

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    If you don't already have any loose koruna rolling around in your pocket, why wouldn't you pay in GBP?
     
    Posted: Nov 14, 2018 By: Nochexman Member since: Jun 14, 2011
    #2
  3. J.McVeigh

    J.McVeigh UKBF Newcomer Free Member

    28 3
    Would we not be subject to someone else's exchange rate that way? Is it more efficient to just do a straight transfer in GBP from our bank or is a third party specialist or broker a more economical way?

    How do you normally do it?
     
    Posted: Nov 14, 2018 By: J.McVeigh Member since: Mar 20, 2018
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    10,554 1,106
    You can look around and see who will do the best exchange rates.
    Subject to the methods the company agrees you can use of course. Pointless trying to pay them by a method they don't have.
     
    Posted: Nov 14, 2018 By: Mr D Member since: Feb 12, 2017
    #4
  5. Nochexman

    Nochexman UKBF Enthusiast Free Member

    1,662 262
    If you are invoiced in GBP and pay in GBP then you are not subject to any exchange rate.

    If you think that you might be charged less if you chose to pay in koruna then that is a different matter. Is this something you have discussed with your supplier? Normally the actual price should be the same in whatever currency it is invoiced in. If it isn't then you should be asking why it isn't.

    When it comes to pay the best way to do it is how you usually prefer to pay, unless your supplier has specified something else.

    Unless you are doing a lot of these transactions it will be generally better value to pay this invoice yourself, rather than involving a third-party like a broker.
     
    Posted: Nov 14, 2018 By: Nochexman Member since: Jun 14, 2011
    #5
  6. J.McVeigh

    J.McVeigh UKBF Newcomer Free Member

    28 3
    I think I could have been clearer. Our quotes to date have been in Euros so we need to match that amount at the other end.
     
    Posted: Nov 14, 2018 By: J.McVeigh Member since: Mar 20, 2018
    #6
  7. Gecko001

    Gecko001 UKBF Enthusiast Free Member

    2,839 443
    You need to be careful as if you get paid in GBP there is no incentive for the customer to get a good exchange rate from Koruna to GBP - or Euro to GBP.

    Also, they will be juggling with three currencies if they pay in GBP: Euro, Koruna and GBP. Get paid in Euros and there are only two currencies in the equation as it is very likely they will have a Euro account.
     
    Last edited: Nov 14, 2018
    Posted: Nov 14, 2018 By: Gecko001 Member since: Apr 21, 2011
    #7
  8. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

    3,757 739
    Paying in GBP is best for you to keep your cost price stable. However your supplier will undervalue the conversion, so they don't lose out when the currency fluctuates.

    The fairest way is to agree a conversion rate (their bank rate) when payment is due and use that rate to convert to GBP.

    If you decide to pay in a foreign currency, rates are normally better using a currency exchange house. They are easy to set up.
     
    Posted: Nov 14, 2018 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #8
  9. J.McVeigh

    J.McVeigh UKBF Newcomer Free Member

    28 3
    Can you recommend any exchange houses?

    Thanks,
     
    Posted: Nov 14, 2018 By: J.McVeigh Member since: Mar 20, 2018
    #9
  10. Gavin @ Eooro

    Gavin @ Eooro UKBF Newcomer Full Member

    20 3
    We use currency exchange dot com for our fx payments.

    Easier solution, if you have a paypal account and they do too, ask them to send a paypal electronic invoice...might cost you a few more £'s but much easier than going through the hassle of setting up an fx account.

    Of course, it its a large amount then an fx account might be good to have for all future payments you might want to do.
     
    Posted: Nov 21, 2018 By: Gavin @ Eooro Member since: Nov 14, 2017
    #10