A foreign company that distributes lingerie and swimwear in France, with turnover of about € 260,000, receives payments in Euros or other currencies from its French buyers. These buyers bear the transfer fees which may vary depending on their relations with their bank.
On receipt of payment, the foreign supplier must then pay bank fees (on the transfer and exchange rate) with a minimum amount applied for each transaction received. The exchange rate risk is added to each transaction.
A French buyer paying Trade Company Finances for this same invoice by cheque or accepted bill of exchange in euro bears no bank fees because the cashing takes place in France.
The Foreign supplier receives a bulk transfer from Trade Company Finances for the total amount of all paid invoices, thus limiting bank fees and the exchange rate risk to a single transaction, resulting in significant savings.