Top 5 challenges small businesses face with international transactions

The need for small businesses to engage in international transactions has grown significantly.

Why?

Well, globalisation.

Markets are expanding globally.

Because of this, small businesses now have the chance to reach customers beyond their local area.

This is great because it opens doors to new revenue streams.

Small businesses can offer their products/services to a much larger pool of customers.

But how do they actually manage the practical side of international transactions?

One major challenge small businesses face is fluctuating exchange rates.

So, how can a business deal with this?

Well, it helps to stay on top of the current exchange rates and make sure to plan for fluctuations.

Another challenge is dealing with different regulations in each country.

Then, there’s the issue of payment delays.

And the challenges don’t stop here.

There are many more.

But while these challenges can seem overwhelming, there are some easy solutions to overcome them.

Let’s find out what the top 5 challenges are.

?

And their solutions.

?

Challenge 1: Currency exchange and fluctuating rates

So you own a business that deals with international transactions.

You know that the exchange rates are a real headache.

Exchange rates are constantly changing.

Even a small shift can significantly affect your costs and profits.

The uncertainty of fluctuating exchange rates makes it hard to predict your expenses.

Especially if you're working with multiple currencies.

One day the exchange rate is in your favour, and the next against you.

So pricing your products/services is a real challenge.

It’s hard to maintain consistency when rates keep changing.

So, what can you do about it?

Well, don’t worry there are a few options.

Option one is to use forward contracts.

This means locking in an exchange rate for future transactions.

So, you can shield your business from unexpected fluctuations.

This gives you a predictable cost, which can help with budgeting and planning.

Another way is to work with payment processors.

They offer much more competitive exchange rates.

Some even provide multi-currency accounts.

This helps with streamline your financial management and minimise the impact of fluctuating rates.

Plus it can save both time and money, making it easier to handle international transactions.

?

Challenge 2: Cross-border regulations and compliance

Dealing with different regulations in each country, might be the biggest challenge.

Especially for a small businesses.

You have to deal with taxes, import/export laws and business operations.

Every country has its own set of rules.

One country may have strict tax rules, and another severe import/export regulations.

Trying to keep track of all these can easily lead to mistakes, that could cause legal or financial trouble for your business.

Here is where the confusion really sets in.

So, how do you avoid these pitfalls?

Well, for starters you can take the time to research the regulations of the countries you’re dealing with.

Stay on top of these rules so you don’t miss any important requirements.

If you don’t have the time or expertise, get advice from compliance specialists.

They can help you with these complexities.

So you don’t risk being non-compliance.

Also, you could use software or platforms designed to track international regulations.

These tools provide regular updates on regulations.

So you’ll be sure you never miss any changes.

And of course they reduce the risk of running into legal issues.

?

Challenge 3: Payment delays

What’s the most annoying challenge you ask?

Well, knowing you have a big payment coming over and it gets delayed.

Why does this happen?

Well, it not because they want to annoy you.

Cross-border payments can take much longer to process than domestic ones.

The main reason for these delays is the complexity of international transactions.

When multiple currencies or banks are involved, it’s not uncommon for payments to take several days to clear.

So you just have to wait, even though it slows down your operations and cause cash flow issues.

But there are solutions to this challenge as well.

So, if you want faster payments, look up systems like digital wallets or crypto-based solutions.

These options are known for their quick processing times.

You’ll receive payments much faster than with traditional bank transfers.

But what exactly are digital wallets and crypto-based solutions?

Let’s start with digital wallets.

It’s an online wallet that securely stores your payment information.

So, you can send and receive payments quickly without having to go through the lengthy processes that banks use.

You can think of it as an electronic version of your wallet, but instead of holding cash, it holds your payment methods.

With digital wallets, you can process payments almost instantly.

Now crypto payments.

They are decentralised payments.

This means they bypass banks and traditional financial institutions, making the whole process faster and cheaper.

The best part of crypto payments is that they don't rely on traditional banking systems.

So when you transact with crypto you're not subject to delays caused by intermediaries.

How do you get started with these faster payment options?

Well, there are 2 options.

Option one is you set up a digital wallet or crypto payment system yourself.

This is a great solution but it can be tricky to figure out the right platform and ensure everything is secure.

Plus, you’ll need to keep up with security updates and potential issues as they arise.

Option two is you partner with a trusted service provider that will set up and manage everything for you.

With this approach you don’t have to deal with the technical side of things.

Your partner will make sure you’re set up with the right systems.

This is a great option for small businesses that don’t have the budget and personnel to do it in-house.

You get fast payments and security, without the hassle that comes with the set-up and maintenance.

?So, you get to only focus on growing your business.

?

Challenge 4: High transaction fees

Look at your bank statement.

How much is taken off just for transactions?

A lot?

Well, it’s a common issue.

The thing is, international payments usually involve intermediary banks or third-party processors.

They all take a cut.

Over time, these fees can add up and put a dent in your profits.

So, how can you reduce these fees?

You can look for a payment processor that offers more competitive transaction fees.

This way you can save a significant amount on each transaction.

And the good part is that they not only do offer lower fees, but they also provide quicker processing times.

So, you can get your money faster without the high costs.

Plus, many offer additional features, like multi-currency accounts or better exchange rates, which can further help reduce your overall expenses.

So, it’s worth taking the time to find one that suits your business needs.

The savings could be substantial in the long run.

?

Challenge 5: Managing multiple currencies

Going global means managing multiple currencies and payment methods.

What a headache!

Well, you do have customers and suppliers in different countries.

So you need to accept payments in multiple currencies or even various payment options.

This means more accounts to manage, more systems to keep track of, and more headaches for you.

And let’s not forget about exchange rates.

They fluctuate all the time, and that can impact your profits.

So, what can you do about it?

Well, you can set up a multi-currency account.

This will allow you to hold, send, and receive payments in several currencies, without the need for constant conversions.

It can save you time and effort, making your financial management much simpler.

Or you can partner with a company that specialises in crypto payments and currency exchange.

What, another partner?

Well, they can help you manage these multiple currencies without hassle.

So why not?

You get to offer both traditional and crypto payment methods to your customers and reduce the risk of currency-related issues.

So the right partner will handle the whole process for you, allowing you to focus on growing your business.

?

Simplifying Complex Challenges

Well, we talked a lot about finding a partner for each challenge.

Because let’s face it, having a reliable partner can make all the difference in handling international transactions.

But in reality you don’t have to find a different partner for each challenge.

You only need one that can handle everything.

Which one?

Well, uQualify .

Because we can tackle each of these 5 challenges and more.

Let’s start with payment delays.

With our crypto payment solution, we make sure you don’t have to wait for funds.

Once a payment is initiated, it’s processed quickly and sent directly to you.

So no more waiting around for slow, traditional payment methods to clear.

But if you prefer working with traditional currencies we also offer currency exchange services.

We provide fast, low-cost transfers across multiple currencies.

Whether you’re sending or receiving money internationally, the exchange process is seamless, meaning your funds arrive in your preferred currency, with minimal delays.

Now, let’s talk about high transaction fees.

With our crypto payments, you can avoid the hefty fees that come with bank transfers.

Our rates are lower, so you keep more of what you earn.

And with our currency exchange services you get to handle payments efficiently without worrying about unnecessary costs eating into your profits.

When it comes to fluctuating exchange rates, our crypto payments solution is the solution.

Once the payment is made, it’s converted instantly from crypto to fiat, locking in the rate and protecting you from volatility.

For cross-border regulations and compliance, our services are fully regulated.

Whether you're using crypto payments or currency exchange, we ensure everything is compliant with international standards, so you don’t have to worry about legal complexities.

And if you’re handling multiple currencies, we make it easy.

Our currency exchange service supports over 60 currency pairs, so you can send and receive payments globally without the headaches.

Plus, with our crypto services, you can manage multiple digital currencies without hassle.

Or if you choose, you can store your crypto coins in a safe custodial wallet and send and receive crypto easily via TRC20 or ERC20 mainnets.

With uQualify, you don’t have to worry about finding multiple partners for different challenges.

We’ve got everything you need to ensure smoother, faster, and more cost-effective international transactions.