I need a good way to be paid in Euros by a new regular customer

smish

Apologies if this is answered elsewhere. I have searched the site and forum but it may be I'm so new to the topic that I'm using the wrong terms.

I'm supplying products to a customer in the Netherlands who will pay me in Euros - probably 6/7 payments a year, though this could increase as time goes on. I want to try to avoid or minimise a) fees or high conversion rates for receiving the payments at my end and b) fees for my customer for paying a UK bank at his end.

I don't have an EU bank account. I use Paypal to sell direct to the public in the EU and rest of world but those are small payments (usually £8 in GBP). The customer in the Netherlands is a distributor and the first payment will be circa €1,000. The next is €750.

I have absolutely no idea what the best option is and my customer is very busy so not likely to advise what's best for him - I imagine he'd simply deduct any bank fees he pays from the payment we're due to receive.

Any suggestions or links to find out more about the topic would be very much appreciated.

MoneySavingUser

You need to work out what the best way is for you to do this which will need some research

If he sends you euros via his bank most likely a) his bank will charge him for sending a foreign payment and b) your bank will convert the money into pounds (for which there may be a fee and you might not get as good an exchange rate as if you used somewhere else)

If you think you might need euros at some point in the future (holiday or buying from a european supplier) you could open a euro account - http://www.lloydstsbbusiness.com/internationalservices/euroaccounts.asp (also offered by other banks)

You could speak to a currency broker - the customer will send them the funds, they will exchange them and give you pounds - this may lead to a better exchange rate - on example would be: https://www.caxtonfx.com/currency-services/for-your-business/services-we-offer/ however I don't know what their fees are or how much you need to be converting for it to be worthwhile

For others see: https://www.hifx.co.uk/and
https://www.google.co.uk/search?q=caxton+fx&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-GB:official&client=firefox#hl=en&client=firefox&hs=nM2&tbo=1&rls=org.mozilla:en-GB%3Aofficial&sclient=psy-ab&q=related:www.caxtonfx.com%2F+caxton+fx&oq=related:www.caxtonfx.com%2F+caxton+fx&aq=f&aqi=&aql=&gs_l=serp.12...0.0.0.86330.0.0.0.0.0.0.0.0..0.0...0.0.hqOslT-R-yU&pbx=1&bav=on.2,or.r_gc.r_pw.r_cp.r_qf.,cf.osb&fp=32f341450ee2ba40&biw=1366&bih=597

smish

Thank you! I'll explore these options and report back. I really had no starting point for dealing with this so I really appreciate being given a way forward.

catokelly

Definitely avoid your customer sending the Euros directly to your bank, as you will be subject to the banks terrible rates and fees! Try Thomas Exchange, they can negotiate Euro payments from abroad back into sterling at much better rates than the banks, they also charge no fee for receiving inbound payments. Their website is www.thomasexchange.co.uk

Basically Thomas Exchange holds accounts in Euros and all major currencies. Once you are registered with them, you would get your customer to send the Euros to Thomas Exchange's Euro account, T.E would then contact you to confirm the funds have been received and the current rate, you could choose to book the rate (or wait for the rate to hit a specific target). Once you have agreed the rate, they will tranfer the GBP£ as a same day payment to your UK bank account.

I use them regularly, they offer even better rates for larger transactions, however there isnt much info on their website about this, so I advise you to email them for a registration form [EMAIL="enquiries@thomasexchange.co.uk"]enquiries@thomasexchange.co.uk[/EMAIL] , or visit one of their london offices, or telephone them.

jrusso

I recently opened a bank account in Euro with a German internet bank DKB (https://www.DKB.de) with that you can withdraw funds without a fee at ATMs in the UK.

Alternatively if you are only going to be receiving Euros rather than making Euro payments Barclays do a decent Euro account, they charge for SEPA transfers though. Also if you can keep a balance about 2000€ then Citi bank offer a good Euro account with free SEPA transfers.

ETA: You can also opt to pay £5p/m instead of holding 2000€ in the account.

GlamGirlie

Speak to your local business banking manager. They may be able to suggest a trade facility that minimises currency (and let's face it, country) risk for you.

inmypocketnottheirs

Why not invoice the customer in sterling and let them worry how they are going to send.

jimbob_too

inmypocketnottheirs wrote: »

Why not invoice the customer in sterling and let them worry how they are going to send.

Maybe because the customer might not like their bill increasing every few weeks (as would happen at the moment) and go elsewhere?

inmypocketnottheirs

jimbob_too wrote: »

Maybe because the customer might not like their bill increasing every few weeks (as would happen at the moment) and go elsewhere?

It would save the OP having to re price their goods every few weeks or lose their margin.

money-spending-expert

Hi there,

You should consider using a currency broker for this, I use Foreign Currency Direct and get a great rate of exchange and help with when to actually time the trade. It may be worth contacting them, I use a guy called Daniel.