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Question about import and export: how do I get paid across different currencies etc?

by UK Wealth Wr
2 replies
I am starting up as an import-export agent and I have some manufacturers of products in different countries interested in me being their UK distributor/sales agent. Basically I find them buyers in the UK, in return for a commission on the sale of 10 - 15 %.

Now I have a couple of questions about how I get paid:

1) I use Paypal for some other income streams I have online, but for the import-export business I will be handling order worth thousand of pounds (or dollars). Can Paypal be used to send such large amounts? If not, how do you transfer currencies to bank accounts in different countries?

2) When I find buyers for a manufacturer, does the buyer pay me first, I deduct my commission and then pay the manufacturer? Or do I pay the manufacturer first, then they pay me my commission at a later date?

Sorry if these questions sound a bit basic, but I've been pondering the logistics of how I get paid for a while.

Thanks.
#currencies #export #import #paid #question
  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by UK Wealth Wr View Post

    Can Paypal be used to send such large amounts?
    It can, but that may be a relatively expensive way to transfer funds. You'd need a PayPal business account, probably.

    Originally Posted by UK Wealth Wr View Post

    If not, how do you transfer currencies to bank accounts in different countries?
    By direct deposit or wire transfer, usually, depending on the countries involved (those are two different methods, not two different names for the same thing).

    Originally Posted by UK Wealth Wr View Post

    When I find buyers for a manufacturer, does the buyer pay me first, I deduct my commission and then pay the manufacturer? Or do I pay the manufacturer first, then they pay me my commission at a later date?
    Those are two completely different payment models. Both are widely used. If you use the first, the buyer will (presumably?) by buying from you, and your legal role, responsibilities, rights and obligations may be very different from the situation in which you're a commissioned sales agent. Payment security is, of course, the great potential advantage of the first, but usually at quite some cost in terms of convenience. Either way, you'll probably need some advice from a qualified lawyer.

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  • Profile picture of the author salegurus
    Originally Posted by UK Wealth Wr View Post

    I am starting up as an import-export agent and I have some manufacturers of products in different countries interested in me being their UK distributor/sales agent. Basically I find them buyers in the UK, in return for a commission on the sale of 10 - 15 %.
    Since you are asking such a "basic question" i hope you are up to snuff with the inns and outs of the import/export business. It may no be as cut and dry as you think...

    https://www.gov.uk/getting-the-right...tional-trading

    https://www.gov.uk/export-agents

    Wade World Trade - Import Export Trade Course UK
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