Are all international accounts the same?
Not all are created equal. Multi-currency accounts eliminate foreign exchange conversion and simplify transactions, while offshore foreign currency time deposits gain potentially higher interest rates and flexible maturities, and are also a useful portfolio diversification tool.
You can also get accounts specific to the countries you’re doing business in. For example, Asia account services give you a wide range of financial and trade services in Hong Kong and Taipei, including international cash management, financing and commercial investment banking services. Canadian dollar checking reduces international payment and currency conversion costs, while centralizing cash management.
How do payments and collections work with international banking?
In most places your company does business outside the U.S., you can use the bank’s payment and collections products to speed the movement of funds, reduce the cost of moving funds, increase cash flow control, and integrate domestic and international treasury management products. These services include:
- Wire transfer service — Expedite wire payments to and from more than 76 countries.
- Foreign currency drafts — Get secure bank checks payable in multiple foreign currencies.
- Foreign exchange services online — Get real-time, comprehensive foreign exchange services, 24 hours a day.
- International ACH — Facilitate bulk payments, increase control over your cash flow and reduce costs of moving funds.
- U.S. dollar or multi-currency accounts — Simplify foreign currency transactions, receivable deposits and funding to meet payment requirements.
- Letters of credit (LCs) — Get import, export, standby or prepaid LCs and speed up the issuance of your LCs in the U.S. and in Asia and the payments you receive on sight and deferred payment LCs in your favor. Manage your LCs online.
- Foreign cash letters — Get a cost-effective solution for clearing checks either in foreign currencies or drawn on foreign banks.
- Documentary collections — Expedite processing and lower the sale and transfer costs of goods and funds worldwide. Create direct collection instructions and drafts online, request document amendments online and accelerate the delivery of shipping documents.
For faster payments, go online to get real-time MIS transaction reporting data, document imaging software and information reporting. Also, a Canadian wholesale lockbox can help you accelerate your Canadian collections and convert payments into cash in the shortest time, cutting mail and processing float by several days and enhancing your company’s cash and investment positions.
Alice Chen is a vice president and commercial banker with the Wells Fargo Business Banking Group. Reach her at (713) 319-1727 or [email protected].