Paying an overseas supplier is more than an international transfer. The payment affects production slots, shipping, contract terms and delivery dates. A late, short or misdirected payment can cost far more than the transfer fee.
The best method depends on the supplier relationship, invoice currency, destination country, order value and commercial risk. A £500,000 machinery purchase should not run through the same process as a £3,000 sample order, and repeat payments to an established manufacturer can be handled differently from a first order with a new supplier.
For established suppliers, a specialist international business account or payment provider is the practical day-to-day route. SWIFT gives broad coverage, local payment rails improve speed and cost on supported corridors, and letters of credit or trade finance suit transactions that need more protection or funding.
| Method | Best for | What to manage |
|---|---|---|
| International business account | Recurring supplier payments with FX control | Coverage varies by provider and corridor |
| SWIFT bank transfer | High-value bank-to-bank payments anywhere | Intermediary deductions and tracing time |
| Local payment rail | Repeat payments into supported markets | Not available for every country or currency |
| Letter of credit | Large orders or new suppliers | Bank cost, documents and processing time |
| Escrow, marketplace or card | Samples, small or first orders | Uneconomic or not accepted for large orders |
| Trade finance | Funding deposits, stock or pre-shipment balances | Finance cost and eligibility |
The test is whether the supplier receives the correct amount, in the agreed currency, by the deadline that matters. A provider's sent status is not enough if the factory waits for cleared funds before releasing goods.
Importers often work on tight gross margins, so hidden FX spreads raise landed cost, meaning the full cost of goods delivered to the UK warehouse. The figure to compare is the total sterling needed for the supplier to receive the agreed amount, including every charge and deduction.
Deposits and balance payments usually fall due before the goods arrive, clear customs and sell. The British Business Bank notes that importing and exporting create cash-flow and currency challenges, which is why payment and finance should be designed together.
The figures below come from each provider's UK pricing page in October 2026. Banks such as HSBC set international payment pricing by account and relationship.
| Provider | FX conversion | Example supplier payment fees |
|---|---|---|
| WorldFirst | Up to 0.50% on major currencies | USD to US £0.77; USD to mainland China £11.55; EUR via SEPA £0.27 |
| Airwallex | 0.5% above interbank on majors, 1% on others | Local EUR, GBP and CHF transfers free; SWIFT £10 to £20 |
| Wise Business | From 0.24%, varies by currency | Fee varies by currency and route |
| OFX | Quoted per transaction | No FX fee when paying from held balances |
| Revolut Business | Interbank within plan allowance, then 0.6% | £5 per international transfer above the plan allowance |
A business paying overseas suppliers every month benefits from a dedicated international set-up rather than one-off transfers from a domestic current account. It can hold the currencies it uses, manage verified beneficiaries, get FX quotes and run a repeatable approval process.
Holding USD or EUR is especially useful if the company also earns revenue in those currencies. Even when funding from sterling, the business controls when it converts and sees the full cost before approving a payment.
Wise, Airwallex, WorldFirst and OFX compete with the high-street banks here. Helm, the firm's own business account and payments platform, provides supplier payout accounts through licensed partners in each region, with invoices and customs documents attached to each payment. The comparison of cross-border payment providers for UK businesses profiles each one.
SWIFT, the global bank messaging network, is the default bank-to-bank route for many supplier payments and is familiar to every corporate finance team. A payment can pass through one or more intermediary banks, each of which may deduct a fee.
For time-sensitive shipments, choose the charge option deliberately: OUR means the sender pays all charges, SHA means charges are shared, and BEN means charges are deducted from the amount the supplier receives. Beneficiary details must be exact, because a misrouted or reviewed payment can take days to trace. What matters is how much the supplier received and when.
Some providers deliver part of the route through the destination country's own clearing system, which reduces reliance on correspondent banks. A UK business paying a US supplier may use a local USD route such as ACH; euro payments into Europe may use SEPA.
Local rails are not universal. Currency, country, beneficiary type and provider permissions all matter, so test the top corridors rather than relying on a headline country count. Once a verified beneficiary, currency and route are set up, the same payment can be repeated every month with predictable timing.
A letter of credit is a bank's undertaking to pay the supplier once specified documents, such as the bill of lading and commercial invoice, are presented in line with its terms. It suits large orders, new supplier relationships and payments tied to documentary conditions.
The trade-off is cost, strict document compliance, possible delay if documents contain discrepancies, and more process. It can be unnecessary for a trusted supplier and worthwhile for a first high-value purchase. HSBC and the other high-street banks issue import letters of credit and documentary collections alongside international payments.
Escrow or marketplace protection can suit a small first order where funds are released against an agreed event. Cards may suit samples, online purchases or small urgent invoices where convenience or card protection justifies the fee.
Percentage card fees become substantial on inventory purchases, and many manufacturers will not accept card or marketplace payment for large orders. These methods complement a sound bank-to-bank process; they do not replace it.
China is a central sourcing market for UK importers, and suppliers commonly ask for USD or CNH, the offshore renminbi. Compare the supplier's price in each currency: a USD quote may include the supplier's own FX cost, while paying in renminbi moves the conversion to the buyer, who may get a better rate.
New buyers should be cautious about 100% upfront terms. Deposits, inspection milestones and balance payments on shipment change the risk profile. WorldFirst, for example, publishes a fee of £11.55 for USD payments to mainland China delivered within four business hours, and offers CNH receiving accounts.
Verify the supplier before the first payment and confirm any change of bank details independently, since invoice redirection fraud targets exactly this step.
US suppliers almost always invoice in USD and are used to receiving domestic ACH transfers or Fedwire payments. Paying through a provider with a local USD route avoids an international wire arriving at the supplier's bank with intermediary deductions, so the supplier receives the full invoice amount.
WorldFirst publishes a fee of £0.77 for USD payments to the United States, and Airwallex and Wise also offer local USD payouts. Where the business earns USD from customers, holding a USD balance and paying suppliers from it removes the conversion altogether.
| Situation | Usual payment approach |
|---|---|
| Sample or trial order under a few thousand pounds | Card, marketplace or escrow |
| First production order with a new supplier | Deposit, inspection, then balance; letter of credit for high values |
| Repeat orders with an established supplier | International account on a local rail or SWIFT, fixed beneficiary |
| Large capital equipment purchase | Letter of credit or staged payments against milestones |
| Seasonal stock build ahead of peak sales | Trade or inventory finance funding the supplier payment |
Milestone terms spread the exposure. A common structure is a deposit at order, a further payment after a pre-shipment inspection by an independent inspector, and the balance against a copy of the bill of lading, the shipping document that proves the goods have been loaded.
For EUR invoices, compare paying in euros directly with paying from a sterling account that converts automatically. Holding EUR suits businesses with frequent European suppliers, because it allows conversion at chosen times and avoids many small conversions.
SEPA is efficient for euro payments where the provider and account support it. A business with material European purchasing should treat EUR as an operating currency, with a set process for funding, approval, verification and FX.
The most damaging outcome is a fast payment to a fraudster, not a slow transfer. The Payment Systems Regulator's reimbursement requirement for authorised push payment fraud covers Faster Payments and CHAPS between UK accounts. A payment to a supplier's account abroad sits outside it, so prevention controls carry the full weight.
For a business buying $5 million of goods a year, a 0.5% difference in effective conversion cost is $25,000, before transfer charges. That outweighs almost any monthly account fee.
Management should know the currency exposure from confirmed orders, how long it stays open, and whether spot conversion, staged purchases or a forward contract is appropriate. A forward contract fixes the rate today for a payment on a set future date; OFX, WorldFirst and HSBC offer them to eligible businesses.
Import VAT is a cash cost at the border unless the business uses postponed VAT accounting. A VAT-registered importer can declare and recover import VAT on the same VAT return, so the cash is not paid at import and reclaimed later. No approval from HMRC is needed.
It applies to goods imported into Great Britain from anywhere outside the UK; for Northern Ireland it applies to goods from outside the UK and the EU. The importer's VAT number must appear on the import declaration, and a freight forwarder or customs agent needs written confirmation before making the declaration.
A supplier may ask for 30% at order and 70% before shipment, followed by weeks of sea freight, customs clearance and selling. On a £1 million order, the whole amount has left the business before the goods earn anything. Growth enlarges the gap, because each order needs more working capital.
Trade finance, purchase-order finance, inventory finance and bank facilities can fund that gap, subject to eligibility. Saving £1,000 a month on FX does not solve a £300,000 funding gap that blocks the next profitable order.
The guide to trade credit for importers and exporters explains each facility, and the comparison of business bank accounts for importers and exporters shows which banks provide them.
Where the business needs accounts opened with banks or payment providers in specific corridors, the firm's trade payments service arranges them through licensed partners.
No single method is cheapest. Compare the total sterling cost for the supplier to receive the agreed amount, including FX margin, fees and intermediary deductions; specialist accounts are often competitive for repeat payments.
From same day on some local routes to several business days by SWIFT, depending on provider, currency, destination, compliance review and the receiving bank.
Compare both. Paying in the invoice currency gives you control over FX, while asking for sterling usually moves the conversion cost into the supplier's price.
The PSR's reimbursement requirement covers Faster Payments and CHAPS between UK accounts, not payments to accounts abroad. Verify bank details independently and use dual approval.
Not if you are VAT registered and use postponed VAT accounting, which lets you declare and recover import VAT on the same VAT return.
Yes, subject to the business, the transaction and the provider. Facilities can fund deposits, stock or the gap before customer cash arrives.
Buckingham Capital Consulting has obtained FCA payment authorisations for cross-border firms including Global Send, Nexpay and Orbital since 2013, and arranges the banking and FX relationships those firms run on. For UK importers it sets up supplier payout accounts and currency facilities through licensed partners in each sourcing corridor, including China, the EU and the United States.
Speak to an expert: WhatsApp +44 7563 115980, Telegram @buckinghamcapital or info@buckinghamcapitalconsulting.co.uk.
This article is general information, reviewed against the regulator’s published requirements on the date shown. It is not legal advice; the regulator’s current publications take precedence.