VBCE: Currency Exchange in Vancouver

What is the best way to Pay USD Suppliers?

May 30, 2024

When importing and exporting, a strategy to optimize foreign payments is a wise idea. We share the best way for business owners and accounting teams to pay suppliers or vendors in USD to get the strongest USD to CAD or CAD to USD exchange rate and reduce bank transfer fees.

When we talk about suppliers, we’re referring to a person or organization that provides something needed, such as a product or service. This can include importing or exporting products, USD receivables, USD income for contractors, buying commodities, or software from US or international companies that prefer USD transactions.

According to Global Affairs Canada, the top goods import and export country is the United States, and we have many clients at VBCE who are actively exchanging USD and CAD and sending or receiving wires for payment. Preferring to save on exchange costs during these transactions, small and medium-sized companies have realized that currency exchange rates can give a better return on their activities if they select a partner who helps them get the best rates during these transitions and manage the transfers for no additional fee.

Top 3 Tips to Optimize Your Foreign Payments:

1. Rates fluctuate; don’t get caught on the wrong side of market volatility

Work with a trusted FX Trader who understands your business, can advise you on current market conditions and monitors the market for you as you prepare for larger transactions. Timing really is everything; for example, if you have a large USD software invoice coming up, you may purchase the USD the month before if rates are more favourable or wait if your terms are net 30 and the market rates are changing. In addition, compared to a bank, you can save up to 3% in exchange rates when working with a firm like VBCE since our core business is currency exchange.

2. Save time and money on wire and transfer fees; don’t give the banks more money

Once your account is set up at VBCE, you can exchange funds and wire them to your supplier while enjoying a better exchange rate than the bank will offer. You also get access to an experienced team of customer service representatives who are experts in foreign payments. In addition to wires, if sending or receiving funds to or from the US, you have options for Electronic Funds Transfers (EFT) and Automated Clearing House (ACH) transfers.

3. Get access when you need it and keep electronic records of your transactions

If you have recurring payments, you can self-manage payments through a secure online tool like VBCE Online, which gives you access to trading for currency exchange and paying vendors and suppliers 24/7, 365 days a year.

Exchanges and transfers can be made at any time. You can set up your vendors and suppliers in advance and confirm the details with the VBCE Online team so you can transfer confidently when needed. You confirm exchange rates via quotes, and once confirmed, you can transfer and receive a digital receipt for the transaction. This option is ideal if you transfer over $50,000 CAD/year.

If you use your bank to transfer large amounts to foreign suppliers, you don’t get electronic receipts you can easily save and refer to over time. Most banks at the branch will give you printouts with a stamp that aren’t convenient for digital recordkeeping. Online platforms give you access to your transaction history with the exchange rates included and can be exported for month-end reporting, no paper filing or scanning is needed.

We’ve helped thousands of Canadian businesses for 35+ years

We pride ourselves on being a local business that aims to help Canadian business owners grow and thrive and we are a leader in import and export payments. If you’re curious about the difference and savings you can receive, ask for a free audit with an experienced VBCE FX Trader. We’ll review your needs and share how much you can save money and time to optimize your foreign payment transactions.