Accounts management and payment challenges
Thread poster: Alex Denver

Alex Denver
Member (2014)
German to English
+ ...
Apr 25, 2014

I have been in this Industry for the past 8 years and dont know where to ask this question! Hope the agencies in developing nations are facing similar issue when they send payment to their suppliers.

We are based in India, I have listed our challenges to maintain our payments to our suppliers on time but !

1. Bank transfer is way too costly. Expense for any payment made through bank transfer is about $35 in total which includes Auditor fees (for each transfer) and bank transfer charges. On top of this there are more cost involved like conversion fees, TDS, and service fees which varies depending on the country the payment is sent to.

2. Paypal balance cannot be maintained in the same currency as we receive the payment and it gets directly Auto withdrawn to the local bank account linked to paypal. Which means every time you receive a payment from the customer or sending a payment its entitled to conversion charges and transaction changes. Which mean all incoming and outgoing payment through Paypal has a conversion charges other than Indian Rupees.

3. Because of the above no balance concept in India, the only way to send money is to use the personal credit card as the bank here does not give a credit card in the company name. So all the money spent for the company through the personal credit card reflects in your personal Income tax which is high and complicated to move as company expense!

If you have faced similar issues in your country and willing to help us and others who are struggling to make a living in this industry; please come forward and share your valuable experience.

I really appreciate your time and support in advance!

Thank you!

Regards,
Alex Denver


 

Alex Lago  Identity Verified
Spain
Local time: 20:23
Member (2009)
English to Spanish
+ ...
Maybe changing banks Apr 25, 2014

A quick search of the Internet showed;

http://www.online.citibank.co.in/portal/newgen/cards/tab/citi-corporate-card.htm
http://www.axisbank.com/personal/cards/credit-cards/corporate-insta-card/corporate-credit-card/features-benefits.aspx
https://www.sbicard.com/cards_for_you/sbi_platinum_corporate_card_0_051235.html

So it looks like maybe all you need to do is change banks?

Alex Denver wrote:
3. Because of the above no balance concept in India, the only way to send money is to use the personal credit card as the bank here does not give a credit card in the company name. So all the money spent for the company through the personal credit card reflects in your personal Income tax which is high and complicated to move as company expense!
Alex Denver


 

Diana Obermeyer  Identity Verified
United Kingdom
Local time: 19:23
Member (2013)
German to English
+ ...
paypal Apr 25, 2014

Alex Denver wrote:

2. Paypal balance cannot be maintained in the same currency as we receive the payment and it gets directly Auto withdrawn to the local bank account linked to paypal. Which means every time you receive a payment from the customer or sending a payment its entitled to conversion charges and transaction changes. Which mean all incoming and outgoing payment through Paypal has a conversion charges other than Indian Rupees.


You could just cancel the Auto withdraw? Nobody is forced to use that feature.
I use Euro payment into my Paypal account to pay bills in Germany and USD balances for my online shopping instead of withdrawing to my UK account so that I don't get hit by conversion rates twice. You can set up as many currency balances as you like, they will just be itemised separately. If you have outgoing payment in the same currency as your incoming payments, this will save a lot of charges.


 

3ADE shadab
Local time: 23:53
Hindi to English
+ ...
Do you Represent an translation agency or individual ? Apr 26, 2014

Alex,

If you are representing an Translation agency and sending payment to your translators then use a Bank transfer option, and if you are asking as individual then these problems are normal and you have to adjust yourself accordingly.

Bank transfer is not costly at all. Please check with other banks as well. We also send payment through Bank transfer only and it cost us not more then $10 or less depending upon country to country. If you are running an agency then you have to hire an auditor CA have to pay Service Tax as well.

These all charges you can add once you quote for translation to foreign client.


Thanks.
Shadab


 

Vasu Valluri
India
Local time: 23:53
Russian to English
+ ...
I faced a similar problem till I started using Moneybookers.com Apr 26, 2014

I faced a similar problem three years back and I thought of opening offshore business even. Then I found Moneybookers.com and it solved my problem. Their working principle is same as PayPal but you need not withdraw balances. I agree their charges are higher than PayPals but when you can accumulate received payments and then use it to pay your vendors, you tend to gain by avoiding dual conversion charges in other methods.
Now I think ICICI bank has a channel to send money. Also you can open USD or Euro account in ICICI and avoid unnecessary conversion charges if you have IEC code.


 

Little Woods  Identity Verified
Vietnam
Member
English to Vietnamese
Calculate them as business costs and change your pricing Apr 26, 2014

You can shop around for other options but I believe there are not many but the existing ones. I had the same problems with my bank and found that banks are almost the same. Their services are somewhat different and quite beneficial at first glance but in the end, what they take will be the same. This is when you should consider your rates and update them accordingly. After all, your rates should reflect the involved business costs and these transfering fees are also cost like electricty or water fees.

Also, consider using Skrill over Paypal if you could. I prefer Skrill since it is safer and it let me received the amount without converting it. The fees are a little higher than Paypal but for large amount, it saves and really is worth it.


 

Alex Denver
Member (2014)
German to English
+ ...
TOPIC STARTER
Thank you! May 6, 2014

Many thanks for your replies!

 


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