In the global village powered by the digital age, working internationally is a fact of life for thousands of UK companies and organisations.
In 2023, international projects for chartered architecture practices across the UK jumped by 43% and accounted for 1/5 of all revenue, according to an RIBA (Royal Institute of British Architects) Benchmarking Report produced in 2024. It makes sense.
International work offers a buffer against the recent highs and lows of the UK market. There has been a downturn caused by the global pandemic and other political and economic factors, such as Brexit and the Russia-Ukraine war, which have led to both volatility and instability.
The World Trade Organisation (WTO) reveals that the UK is now the biggest exporter of architectural services globally, overtaking the US, which has dominated the international stage for several years.
The execution of a new development or project can involve suppliers and contractors from multiple countries and different global offices and businesses. At the drawing board stage, architects’ plans may be drawn in the UK for execution thousands of miles away on a site they’ll never set foot on. That’s great for business, but how can you organise effective and secure invoicing across potentially more than one country and currency?
We take a closer look at the challenges for international payments and how architects can manage the pitfalls of compliance checks, and avoid constantly high fees, unfavourable exchange rates, and snail slow invoice payments.
What makes the world of architecture unique in e-commerce?
Collaborating on international projects opens a world of design opportunities and potential business development for architects’ practices. Huge numbers of UK businesses trade overseas, but there’s a literal world of difference between receiving payment for a product made here and sent abroad, and billing for a service that may be dependent on multiple site inspections in a far-flung location.
Not only are architectural design schedules fluid and multi-part,y so which means multiple currencies, but a UK architecture practice may also need to pay a partner overseas as well as invoice. This is the territory of different time zones, local payment systems that no-one’s ever heard of, and a stressed-out finance team.
Re-designing the wheel
It’s probably no great surprise that many finance systems are playing catch up with these new ways of doing business, and UK banks fall firmly into this category.
International transactions have developed at breakneck speed, but many organisations lag behind when it comes to updating their own processes or looking for a different way to do things.
For smaller architectural practices, most people are too busy at the drawing board to contemplate a root-and-branch review of what may be infrequent or occasional payment problems. But there is a better way to do things if you’re involved in cross-border work, even if it’s not that often.
Architectural practices require a sophisticated payment system to ensure everything flows smoothly and to avoid last-minute errors and delays. A dedicated money transfer service can handle all the intricate details, such as currency fluctuations, costly fees, and nation-specific compliance regulations.
The benefits of a bespoke money transfer system
International payments are surprisingly complex, with different facets that you’ll have to navigate. Rapid payments are often a requirement due to changes in design and build requirements. Due to the involvement of multiple parties, a stalled payment can have a domino effect on other contractors.
SWIFT Codes and IBAN Numbers
A If you’re trying to organise international payments then you’re quickly going to come up against SWIFT Codes. So, what is a SWIFT code in banking?
A SWIFT code is a unique alphanumeric code of 8 or 11 characters that identifies a specific bank or financial organisation. It’s a vital part of the transaction chain, ensuring that a payment is directed to the correct bank and branch. Think of it like the International Book Standard Number (ISBN); you can pinpoint a specific book.
Another identifier is the IBAN (International Bank Account Number), a multi-digit code of letters and numbers used to process payments worldwide.
Seamless Money Transfer
It does help to know your IBAN from your SWIFT code, but ultimately, a practice can save time and money with a dedicated money transfer system. This will give you the speed and operational efficiency many architects’ practices require for international projects without having to worry about the details.
Currency rates may look favourable at the start of a project, but can change significantly when it comes to making or receiving a payment. Instant currency conversion and transfer means you can avoid disadvantageous exchange rates.
A tailored money transfer system can handle multiple currencies and offer real-time tracking; it will have already managed the headache of compliance, which varies from one country to another.
The alternative of working with your bank may mean a slow and expensive service that operates in one country at a time and won’t integrate with your existing accounting set-up.
Receiving a payment via an international wire transfer, such as SWIFT, is often slow and expensive, and that’s because it’s not specifically designed to handle different payment networks and multiple currencies. UK banks charge a flat fee, processing fees, and an exchange fee for each transaction, and that can get expensive on a single payment that must travel through multiple currencies.
Using a multi-currency payment system
Using a dedicated international payment transfer system that is tailored for multi-currency transactions will help lower the costs generated by conversion fees and unfavourable exchange rates, protecting profit margins. This is vital set against a backdrop where the amount you invoice may not be the amount you receive.
Minimising transfer delays on multiple international payments and receipts can help soothe cash flow. An international transfer system also eliminates the need to open an account in the customer’s or supplier’s country.
Most international payments fail or are delayed because of compliance mistakes; this is something a dedicated money transfer service can manage, so you don’t need to worry.
It’s also vital to choose a payment transfer service that can integrate with your existing accounting software – this is the ultimate in seamless finance management. It will make every payment in and out feel like a local transaction, leaving architectural professionals to return to the drawing board.
