Shipping companies often have to deal with complex logistic networks. Payments should be made in a timely manner to partners, and suppliers to ensure smooth functioning of company. Wire transfer provide the perfect answer for these requirements, offering a speedy and clear way to manage payments across the globe.
What is Wire Transfer?
Wire transfers are one of the fastest and most transparent ways to move funds between people and entities. It allows to transfer money across different geographical locations through electronic means.
Types of Wire Transfer
There are two kinds of wire transfers: domestic and international. Each type has its own set of charges and timelines.
Domestic Wire Transfer
These types of wire transfers usually happen between financial institutions located within the same country. These transfers can be used to move money between accounts swiftly.
International Wire Transfer
In international wire transfer sending and receiving institutions are located in different countries. For example, if a US based financial institution makes a wire transfer to a bank in France, it is categorized as an international wire transfer.
How Long Does a Wire Transfer Take?
Transfers usually happen quickly. Most times domestic wire transfers are processed within 24 hours.
International wire transfers typically take between 1 to 5 days. Delays usually occur as they have to pass through two countries’ domestic systems and adhere to specific regulations set by the country.
Information Needed for Wire Transfer
Provide the following details for domestic wire transfer
- Recipient’s full name
- Recipient address, and phone number
- Recipient’s bank name and information like checking account number, and routing number
- Amount to be transferred
- Transfer purpose (optional)
- Senders full name, address, and phone number
All the above details are required for international wire transfers also. The only difference is that you have to provide some additional information like BIC/SWIFT code. These codes are particularly used for cross-border transactions. It helps to identify financial institutions involved in transactions.
What is SWIFT Code?
SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. It serves a distinctive code made up of 8 or 11 characters and contains information about the bank that it belongs to. This system allows for quick and effective transfers of money between financial institutions located worldwide.
A SWIFT usually consists of
The Bank Code (Four Letters): This shows the name of the bank.
The Country Code (Two Letters): It specifies country in which bank is located.
The Location Code (Two Letters or Numbers): The code helps to pinpoint the area of the bank.
The Branch Code (Three Letters or Numbers). This code can be used to identify specific branch of bank.
Cost of Wire Transfers
Charges are levied for outgoing and incoming wire transfers. Fees can range from anywhere between $0 to $50. Fees for sending money domestically usually start at $0 to $35, while international outgoing wire transfer fees are usually $35-50.
Why Shipping Companies Need Wire Transfer?
Shipping firms depend on quick and safe payment systems to ensure their processes continue without interruption, and wire transfers are the perfect option. They provide quick and dependable transactions for payments both within the country and abroad, enabling shipping companies to pay their suppliers, and logistics partners on time.
Any transaction delays can cause operational issues and missed delivery schedules in logistic industry. Wire transfers allow for swift fund transfers, helping these companies keep their supply chains running smoothly.
Issues Faced by Shipping Companies
Payment Delays: Relying on conventional payment approaches often results in delays, impacting the smooth handling of operations.
Expensive Wire Transfers: The high fees associated with cross-border wire transfers reduce the profit margin of a company.
Inconsistency in Payment Tracking: As there are various suppliers and payment methods involved, companies find it difficult to keep track of their transactions in real-time.
Fast and Secure Transactions
Sometimes businesses are caught in situations where they must move funds internationally or make payments within their domestic territory. Zil supports both sorts of transfers, providing a dependable and versatile solution to manage payments regardless of the recipient’s location. The platform guarantees fast and secure transactions, helping to prevent payment delays.
No Hidden Fees—Just Affordable Transactions
Shipping companies often struggle to keep their transaction costs low. Zil enables businesses to open a US payment account without concern over monthly charges or minimum balance needs. Shipping companies can open an account with the platform and conduct wire transfers at a reasonable rate. The platform offers low-cost domestic and international wire transfers, providing a cost-effective way to manage payments.
Easy Online Payments for Logistics Management
Zil allows shipping companies to handle their payments from any location at any time. This ease is essential in an industry where quick transactions are important. Whether you need to pay customs fees or suppliers for goods on the move, the platform’s wire transfer services simplify online payments, removing the hassle of going to the bank. The platform helps shipping companies track and manage payments easily, giving them a clear view of financial transactions and making reconciliation accurate.
Wire transfers remain a popular choice for people and entities because of their swiftness in handling transactions. Use the cloud-based platform to execute large-value transactions at a competitive rate.
