There are many benefits to using our services, including the exchange rates we are able to offer our clients and low fee wire charges. Even though it may only look like we are saving our client a couple of cents on every dollar, it really adds up and can result in significant savings!
Here are some great money-saving examples.
Wire Transfer Savings
One of our loyal clients, Mike*, imports clothing from the United States and from Asia. Every month, he sends a wire transfer of approximately $10,000USD to the United States to pay for his imported goods.
We are typically able to offer Mike a rate on his USD that is two cents lower than the rate he would be offered at his bank. Additionally, our wire charges are $20 less than Mike’s bank.
These numbers may look small, but doing the math paints a different picture. Mike stands to save $220 per month simply by using our services – which is over $2600 saved per year!
Credit Card Payment Savings
When Mike brings in imported goods from Asia, he uses his credit card to pay for the goods.
We asked Mike about his credit card transactions, but he was hesitant to make any adjustments because he loves the benefits of gaining travel points by using his credit card for these purchases. Mike is able to collect enough points on his every year to finance a family vacation and was not willing to sacrifice his free vacation.
But is his vacation really free?
Let’s look at the numbers to see the full picture of how Mike can save money.
Mike charges roughly $30,000USD per month to this credit card. The credit card company charges him 3% to exchange the USD into CAD. This conversion fee alone is costing him $10,800.
But Mike also likes the cash-flow ease that $30,000 a month gives him. Mike’s bank offers a points card in USD, meaning all of his imported goods can continue to be paid for on his credit card. He can enjoy the 3-4 weeks of cash flow that the credit card affords him and continue to travel with his accumulated points. At the end of the month, instead of paying his bank 3% to convert the USD into a CAD balance, he can visit Currency Converters and buy the USD to pay off the balance at a rate much more competitive than the bank would offer him. By doing this, Mike is still able to benefit from the accumulated travel points to enjoy the vacation and the perk of the interest-free cash flow, and he gets the lowest possible cost for the USD that he needs to buy.
The team at Currency Converters is always happy to help save you money by finding the best exchange rates possible for your business services. Reach out to us at any time with your questions. We look forward to serving you.
*Mike’s name and business type has been changed to protect his privacy.