How to Make International Payments with No More Bank Visits
July 7, 2017
Transparency and efficiency in payments were major pain points for Veem customer Cronus Business Services (CBS). A company that operates in oil, gas, and petrochemical equipment supply, CBS makes monthly, sometimes weekly, payments to Europe, Singapore and Canada for the equipment they need to build their products. In order for CBS to collect that equipment, they had to first prove to their suppliers that they had indeed started a payment, and that was a complicated process.
For a company of only sixty people, CBS found traditional banking services inconvenient to use and expensive. To initiate an international wire transfer, CBS had to visit a bank location in person. The bank gave them a 4-5 day window during which the supplier could receive the payment, but there was no certainty or notification when the payment actually went through. Sometimes, the payment for the wire transfer would be deducted twice from their account, which meant another visit to the branch. Suppliers would hold then the product, creating unnecessary production hold ups for CBS.
The switch to Veem, was a personal choice for Yan Manevich, owner of CBS. Having heard of Veem from his wife, Yan chose our global payment platform because of cost effectiveness, transparency, and convenience. He was also pleased that he could make recommendations on the platform’s user interface and that the team at Veem took action on his input. For onboarding his suppliers, Yan admits he had his hesitations, but after receiving confirmation that a Russian client received a payment through the Veem platform, he knew the process was both efficient and effective.
CBS previously used both US Forex and Wells Fargo for their international wire transfers, and they ran into issues. The standard payment process for both companies required them to travel to the branch and enter a transaction into the system in person. Instead of being told at the time of the transaction what the exchange rate and wire fees were, a note would be sent to CBS with that information. Not only was this a time consuming process, but Yan felt they were being charged too much to use a simple service that required he do all the work. On top on this, there was also the added level of uncertainty as CBS had no knowledge when the receiver would actually get the payment.
CBS uses multiple currencies to pay several suppliers each month. Besides US dollars, CBS also makes payments in pounds and kronz. For CBS, it was much more preferable to be able to make all these payments in one place – the Veem payment platform – without having to travel to a bank branch. Veem not only allowed CBS to make the payments from their office without wasting time on commuting, but also allowed them to have records of all of their transfers in one place. They can track now all their payments in real time at any time, which alleviates pressure from suppliers for proof of payment.
CBS admits switching to Veem wasn’t without some uncertainty at first, but overall they love that Veem saves them money by not charging unneeded wire transfer fees, providing the most transparency, and the most convenience. For an internationally operating small business, that means everything.