Borderless Finance: Effortlessly Track Your Global Transactions

Picture this: You're sending an important package around the world. You've wrapped it up nice and tight, put the right address on it, and handed it off for delivery. But who knows what'll happen once it's out of your hands? Will it sail smoothly through the global shipping maze or hit unexpected snags and delays? 

Well, that's just like international payments. Just as a package can run into surprises on its journey, sending money across borders comes with its own set of uncertainties. Fluctuating exchange rates, rules and regulations in different countries, and banking procedures can all mess with the smooth transfer of funds. These uncertainties aren't just a hassle for businesses – they can seriously mess with the money flow and operations.

‍

Challenge with SWIFT payments

SWIFT, also known as the Society for Worldwide Interbank Financial Telecommunication, is a massive communication network utilised by banks and financial institutions for the rapid, precise, and secure transmission of information, particularly money transfer instructions. Since its inception in the 1970s, it has emerged as a fundamental component of global finance, fostering cross-border payments by linking numerous financial entities worldwide. Nonetheless, despite its effectiveness, the system can be intricate and ambiguous. Users frequently encounter obstacles such as delayed transactions, inaccuracies in transaction details, and rigorous compliance checks, rendering the international payment process via SWIFT complex and occasionally unpredictable.

Take the example of Maya, a software developer living in Canada who frequently uses SWIFT to pay for her European suppliers. While SWIFT is crucial for global financial operations, Maya often struggles with its complexities. For instance, a payment to her supplier in Germany was delayed due to unclear instructions and incomplete bank details. Similarly, a small error in the account number caused the payment to be redirected, resulting in significant delays. Furthermore, compliance checks can hold up transactions, similar to additional screening at an airport for travellers. Maya's experiences highlight the common challenges within the SWIFT system: unclear instructions, errors in details, and complex compliance requirements made even more difficult by intermediary banks' involvement. These hurdles often create an unpredictable and complicated journey for international payments, impacting businesses like Maya's that depend on timely transactions.

‍

Also read: Tax Residency Application (Form 8802) and Certificate (Form 6166)

‍

Manual tracing of payments can be a real struggle

In the wild world of global finance, following payments can be like navigating a maze. Just ask Ana, a textile seller from Brazil. Her quest to track down a payment to an Italian supplier turned into a real adventure. Starting with her local bank in Brazil, she had to contact various European banks for more information. Each bank gave her some pieces of the puzzle, but none had the full picture. Tracing her payment was a long and complicated process, with lots of uncertainty and communication breakdowns. Ana's story really shows how tough it is to manually track international payments through regular banks.

‍

Introduction to Inkle Transfer Pricing Payments

Inkle TP Payments simplifies intercompany transfers, specifically between USD and INR. Our cutting-edge system aims to optimize international transactions, offering businesses a more streamlined and efficient process.

• Simplified onboarding and tax compliance
  Inkle TP Payments streamlines the onboarding process using a simple questionnaire to gather information about the entity and financial activity. It also assists users in managing their tax responsibilities by creating a personalized calendar with tax deadlines and sending reminders for these deadlines.

• Integration with existing financial systems
  The platform effortlessly integrates with your current financial systems, allowing for smooth data ingestion via tools such as Plaid and bank statements. This ensures that transactions are easily categorized and synchronized with the user's accounting software.

• Direct bank-to-bank transfers
  Inkle TP Payments stands out for its ability to facilitate direct bank-to-bank transfers. By leveraging the top global banks, the system ensures additional security, as the funds don't pass through Inkle's platform.

• Efficient settlements and real-time transaction status
  Experience the advantages of T 1 settlements, ensuring that funds are swiftly accessible in the recipient's bank account within one business day. Additionally, the platform provides instant transaction status updates, fostering transparency and trust throughout the process.

• Transparent and upfront FX rates
  At Inkle TP Payments, we place great emphasis on transparency, especially when it comes to FX rates. Our users have access to real-time mid-market rates before making a transfer, guaranteeing complete fee transparency.

• Complimentary Foreign Inward Remittance Advice
  When you use Inkle TP Payments to transfer money, you'll also get a free Foreign Inward Remittance Advice (FIRA) that you can download from the dashboard whenever you want. This handy feature makes it easier for users to keep track of their transactions.

‍

Here's a step-by-step guide to make the most out of Inkle TP's dashboard

‍

Case study

A leading retail startup called 91Squarefeet leverages cutting-edge AI technology and a network of suppliers to build retail stores, effectively addressing the industry's organisational hurdles. However, they encountered significant difficulties in managing intercompany transactions due to their unique flip structure - with the primary entity based in the US and a subsidiary in India. This led to excessive communication with bankers and intricate negotiations on foreign exchange rates, posing serious challenges for the business.

Inkle's Transfer Pricing Payments addressed these difficulties, providing a smooth way for US-based startups to transfer funds to India. Tailored specifically for this purpose, it ensured next-day settlements, clear pricing, and thorough compliance. As a result, 91Squarefeet was able to efficiently streamline their intercompany transactions using this system.

Inkle's platform simplified 91Squarefeet's operations by streamlining subsidiary account management, providing clear and stable FX rates, and removing the reliance on Indian bankers for fund transfers. Moreover, it guaranteed detailed transaction information through Foreign Inward Remittance Advice within just 24 hours of settlement, ensuring quick access to crucial data.

Do you want your organisation to enjoy seamless USD-INR transactions? Get in touch with us today.

Meet us on LinkedIn.