Consulting company based in US accepting payment from European clients?
I have a consulting company and want to start accepting payments from European clients. The charges will usually be around 6,000 dollars. I feel like there should be a better way instead of doing a wire transfer and having my clients and myself both paying transferring fee. Does anyone know an alternative way of handling this?
Payments International Invoice
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Credit cards? Checks? – Littleadv 10 years ago
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You could open a Euro-denominated bank account in Germany (or Sterling in the UK), then receive finds for free and only pay once when you transfer the funds out to the USA. Transferring money across countries and across currencies is a big revenue generator for many banks, so until someone disrupts that (awesome startup idea) all we can do is minimise the number of transactions and maximise the amounts, as that attracts the smaller fees. – Steve Jones 10 years ago
1 Answer
You can always incorporate locally and open a local bank account to take euros. Once the money is collected in your local european company (and paid its taxes locally) you can write yourself cheques pay employees or whatever you want from that account. You can set up direct deposits to your homebase account or simply just keep the money abroad for expansion later into that field.
As for the amounts I believe international wire fees are in the range of $20.00 or so. So if you do end up having to wire money just make sure the amounts are large enough that the $20.00 isn't over taking your profit margin. E.G. $20/$100 is 20% $20/$10,000 is 0.2%.
If you can't setup foreign accounts then I suggest a minimum purchase amounts to again lesson the transfer fee's
