Export from Canada is huge. But it's not easy for all Canadian exporters. Going international with sales and business activities is a challenging undertaking for small and medium- sized enterprises (SMEs). Some of the hindrances that have to be overcome are related to breaking into foreign markets and foreign exchange rates.
SME exporters in Canada
One in ten Canadian SME companies is involved in exports although as many as 90% of these companies export only to the US. Also, the average export sales make up just 4% of the total sales. This is generally low activity and it is indicative of the high level of wariness that traders have about venturing into the exporting business.
One of the biggest risks and challenges that Canadian SMEs face is in regard to receiving payments. The problem here is two-fold; getting payments on time so as to maintain positive cash flow and foreign exchange rates that fluctuate frequently and unpredictably.
The B2B Pay Solution
The good news is that there is a solution that addresses these two problems; the B2B Pay solution. B2B Pay has the mission of speeding up international business transactions and making them cost-effective and simple. The long procedures that involve passing paperwork back and forth are eliminated.
B2B Pay makes this possible by offering businesses virtual accounts. These accounts speed up transactions significantly because everything is done online, with no papers that need to be passed back and forth except for matching each payment with an invoice. This means that exporters can receive their payments faster. They face no delays during which foreign currency exchange rates could fall and negatively impact the returns made on a transaction.
Virtual accounts also reduce the cost of international financial transactions significantly. Doing transactions with B2B Pay saves between 50% and 85% of fees on currency exchange and transfer, which can increase the profit margin of many companies by between 7% and 20%. Savings made by carrying out transactions with B2B Pay are much lower than the cost of doing a wire transfer from a bank in Europe. These savings are generated from our pricing model which is based on two fundamentals; pricing that is straightforward and transparent and keeping the cost of transactions as low as possible.
Another advantage that B2B Pay customers enjoy is that we have partnered up with recognized financial institutions. This ensures we are able to handle any number and size of transactions. Our partners are the prestigious Nordea Bank, a bank with headquarters in Sweden that is one of the most respected and trusted banks in the world. Another world leader in finance, Barclays, is also our partner. Our position as a provider of international payment and foreign exchange converter has also been strengthened by investors, both local and international. The Finnish Government has invested in us alongside investors from the U.S.
Do better business
If you are an exporter looking to start or looking to increase your revenue, speed up your international financial transactions and pay the lowest possible charges, choose B2B Pay. Join the band of satisfied customers we serve who keep growing from strength to strength.