International transfers

Definition

Method of payment whereby the buyer/importer orders their bank or financial entity to issue a SWIFT message sending funds to the exporter’s bank or financial entity, indicating the reference for which payment is being made.

When using transfers as a method of collecting payments within a commercial relationship, depending on when the transfer is carried out, it could be said to offer guaranteed collection or not.

If the exporter demands that the importer transfers the funds before goods are dispatched, there is no risk involved since, until the exporter is in possession of the funds, the goods will not be sent.

However, if the goods are sent and the importer is able to collect the goods before making payment, the risk taken is very high. Therefore, this procedure is only recommended for very stable commercial relations where the importer is trusted.

Types

There is a type of transfer known as a Target transfer, whereby funds are sent urgently to the recipient.

To carry out these types of transfers, the ordering and recipient banks must both be registered with the Target system. Furthermore, they can only be issued within the Euro Zone and in euros.

If they are issued within the established timeframe, the funds reach the recipient on the day they are issued.