Import Finance

6. Making Payment

6.1 Electronic transfer systems are fast, straightforward and secure.

• You can usually arrange for a same day or overnight transfer.A typical transfer cost might be £20 for amounts up to £10,000.
• Your supplier's bank may delay crediting the funds to the supplier's account and may also charge the supplier.
• Payments through the giro system are also popular within Europe.They are very cost-effective if the supplier has a UK account.

6.2 Other payment methods can incur lower charges but take longer and are less secure.

The most common is a banker's draft, issued by your bank and payable to your customer.

• A banker's draft can be issued in any major currency. Your bank will charge you for issuing the banker's draft, typically starting at £10.
• You post the banker's draft to your supplier, who can cash it on receipt.

6.3 Avoid paying with a cheque, unless your supplier can cash it easily.

• In general, cheques are expensive to cash at a bank in a foreign country.
• If you make regular small payments to suppliers in a particular country, you may want to open and maintain a bank account in that country (usually in the local currency).You can periodically transfer funds from the UK to that bank account (if necessary, using a foreign exchange transaction to convert the funds to local currency).