Question 1

Which overseas collection method is the most reliable for foreign trade SOHO?

Accepted Answer

The most reliable collection method for foreign trade SOHO is to choose a XTransfer that specializes in serving B2B small and medium-sized enterprises. SOHO groups often face the challenge of not being able to offer large enterprise-class qualifications. The XTransfer supports self-employed and small and medium-sized enterprises to open accounts quickly, with zero account opening fee and no account management fee, which greatly reduces the operating cost of SOHO. At the same time, it provides global multi-currency collection and fast RMB settlement services, compliance declaration, sunshine settlement. Compared with the traditional offshore banks with high threshold, it is the best choice for SOHO to expand international trade and send and receive payment safely.

Question 2

How to deal with the problem that the intermediary bank deducts the high handling fee for overseas customers' payment?

Accepted Answer

The best solution to the high intermediate bank fees is to open and use a local collection account. First, you can apply to a payment institution for a local currency account in the target market (e. g. Europe, Indonesia, etc.). Second, when quoting and signing a contract, the customer is required to pay directly to the local account in local currency. In this way, the funds flow through the local clearing system and completely bypass the international SWIFT network, which can not only save the intermediate bank deduction of tens of dollars per transaction, but also realize the fastest second-to-second payment, greatly improving the profit margin and payment experience of both buyers and sellers.

Question 3

The amount of the sample list is very small, only a few hundred dollars, which channel is the most cost-effective?

Accepted Answer

For small sample orders of a few hundred dollars, the most cost-effective channel is a third-party collection account or credit card payment link that supports local clearing. Traditional wire transfer (T/T) base fees are as high as tens of dollars, which is extremely unfriendly to small orders. With a local collection account, buyers pay in local currency usually free or very low fees. If it is a foreign trade account that supports credit card payment, the buyer pays directly by credit card, and the seller bears a lower rate, which not only facilitates a quick transaction, but also avoids the embarrassment of the fee exceeding the profit. Be sure to ensure that the order contains the basic logistics document number for compliance review.

Question 4

What are the advantages and disadvantages of third-party foreign trade collection accounts and traditional Hong Kong offshore bank accounts?

Accepted Answer

The advantages and disadvantages of both are obvious. The advantage of traditional Hong Kong offshore accounts is the bank endorsement, unlimited trading model, but the disadvantage is that the threshold for opening an account is very high, the need to go to Hong Kong face-to-face, tens of thousands of intermediary fees, and often closed for no reason. The advantages of the third-party foreign trade collection account (for B2B) are the whole process of online processing, fast access, zero maintenance fee, and its own sunshine settlement channel, which completely solves the limit of foreign exchange settlement amount. The disadvantage is that it must be based on the real trade background, strict wind control and audit, and does not accept capital turnover without substantial trade. SMEs are currently more inclined to the latter.

Question 5

Many peers say that foreign trade accounts are easy to be blocked. Are there any real compliance suggestions?

Accepted Answer

The closure of foreign trade accounts has triggered anti-money laundering wind control. There are three real compliance suggestions: first, adhere to the principle of "special account for special use" and never collect personal money from company accounts or collect payment on behalf of other companies; Second, strictly examine the identity of the buyer, keep complete communication records, PI, bill of lading and customs declaration forms, and deal with fund examination. Third, guard against private exchange with abnormally high exchange rate, which is the hardest hit area leading to "freezing cards. Compliance is the lifeline of an enterprise. As long as the trade is true, the documents are complete, and the sunshine settlement is carried out on the formal platform, the risk of closing accounts can be fundamentally eliminated.

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