Small Business being paid in euros

Danielle18

Please can anyone offer advice to me? As a small business, (limited company status) our services are being provided to a German company who will be paying in Euros on a regular basis. Which bank provides the best account regarding exchange rates and charges etc? Thanks

mgdavid

could you add information to explain why you are not invoicing in GBP and therefore being paid in GBP?

eDicky

The most cost efficient way to receive these payments in GBP would be if the German company agrees to use a transfer service such as TransferWise to send it. This would avoid all bank fees, convert the euros to GBP at the perfect interbank rate, and they will charge 0.5% for a very efficient and fast service. So first see if they will agree to sign up and use this method, the party sending the funds needs to initiate it. Perhaps they already know of a similar broker, there are many - anything is better than bank to bank transfer with their charges for sending and receiving and lousy exchange rates.

benjus

I have to agree with mgdavid - if I were doing business with a German company, I would expect them to invoice me in EUR, so why are you not invoicing in GBP?

You do realise that you are exposing yourself to foreign exchange risk in that the exchange rate will vary over time, right?

If you must invoice in EUR, you might be better off opening a EUR account, then you can manage the conversion from EUR to GBP at your own convenience and shop around for an FX firm that will give you a good rate.