Euro (ROI) bankers draft

bt42

I’ve got a small business which has entirely been UK based until now. I’ve just done a bit of work for a client in the Republic of Ireland and they have very kindly paid my invoice- not through bank transfer as requested- but as a bankers draft issued by AIB in Euros. This arrived in the post this morning. 

I’ve got a business bank account with both Tide and NatWest. The NatWest one definitely accepts payments in Euros. AIB does have a UK subsidiary but not sure if it’s technically the same bank. 

Looking up on google it does seem like it’s going to be a pain and it’s not clear that I’ll be able to pay it in easily (I haven’t tried yet as my local branch is shut until Monday). The draft is for a decent chunk of money and there might be more ROI work in the future. 

Does anyone have any ideas of how I can process this payment if at all?  

bt42

If it’s relevant, business is a limited company and I am a director

bt42

Also business is remote/ consultancy and I’m unlikely to need to actually purchase anything in Euros 

jonesMUFCforever

I would think that from what you have posted that Nat West would be the best option (assuming you do not want to go to a forex dealer).
You would need to pay it in using one of their foreign cheques form. They will either negotiate it (money for you 3-5 days) or collect (could take 4 weeks) and there will be a charge of approx 0.25% with a min and max of about £10 -£80.
I will not make any comment about the exchange rate you will get. If the cheque is for a substantial amount (over 50k euros) it might be worth having a word with Nat West about a forward exchange contract - again whether you can get through to somebody to discuss is another matter.

OR
Ask them politely to pay you in sterling (you will need to send back the draft) - did your invoice have your IBAN and BIC number for them to pay you?

bt42

Thanks Jones.  It's a decent amount but not to the >50 extent!
Was expecting bank transfer with IBAN/ BIC on invoice.  But will try to be a bit more clear next time!!!

jonesMUFCforever

So have they paid you the correct amount ie £1000 would be around Euro 1100?

bt42

Payment is correct (I invoiced in Euros)

martindow

Have you made it clear you will cover their costs in sending a bank transfer?  If they need to pay 30 Euros, say, for the transfer they may have decided to cut costs to buy a stamp to post a cheque instead.  Is a card payment another possibility, maybe?

I would chat to the company to discuss how to proceed in the future.  Really, however it is done you should bear the costs and perhaps factor this into your pricing.