Payments to China soar in lead up to Royal Wedding
Travelex Global Business Payments, leading foreign exchange (FX) and payments specialist, has revealed that it has seen a significant increase in payments to China since the announcement on 16 November 2010 of the Royal Wedding.
Payments to China increased 14% in one month following the Royal Wedding and 24% on the comparable period in 2009, as SMEs actively placed orders for memorabilia such as replica engagement rings, mugs and commemorative plates. Travelex Global Business Payments is preparing for payments to China to multiply as the Royal Wedding approaches.
The news echoes November's Travelex Confidence Index report, which found that 54% of importers were confident about future trading conditions. Unfortunately, their confidence spurt following the Royal Wedding announcement has waned after January's VAT hike and concerns over its potential impact on consumer spending.
Commenting, David Sear, Global Managing Director at Travelex Global Business Payments, said: "The confirmation of the date of the Royal Wedding has created a sunny micro climate for businesses focused on commemorative memorabilia. Year on year comparisons show a substantial increase in the number of payments to China since the date of the Royal Wedding was announced.
"Today is the start of the Chinese New Year, the Year of the Rabbit. In the Chinese zodiac, the Rabbit is extremely lucky in business and monetary transactions. Given the number of online registrations we have had for new accounts, we are confident that the first three months in the Chinese Year of the Rabbit should be even stronger."
Top Tips from Travelex Global Business Payments for importers making payments to China:
As some British importers will already be aware, making payments to China can be a tricky business. Travelex Global Business Payments has put some top tips together to help importers navigate around the pitfalls:
1. Remember to write a reference onto the payment, as the Chinese authorities like to understand what the purpose of the payment is. If you do not put a reference in, the payment could be refused.
2. Ensure that the Beneficiary Bank Account Name and Account Number match up exactly. Although this seems slightly obvious, Travelex's Operations Team has seen many payments refused on account of this
3. Make sure you use your full company name. Payments can be refused if businesses forget to add "Limited" to their company name
4. Make sure that all the beneficiary details are accurate. You will need a contact name at the beneficiary business or entity, a telephone number, beneficiary address and their Bank Branch Address.
5. Make sure you have confirmed early in the payment process whether the beneficiary would like to receive payment in US Dollars or Chinese Yuan Renimbi.
Travelex Global Business Payments provides businesses of all sizes a comprehensive range of payment and foreign exchange services including the payment and receipt of international funds. The Travelex Global Business Payments website provides businesses with a simple online account application form together with a payments health check to ensure that businesses are making their payments as safe, efficient and cost effectively as possible - travelexbusiness.com/.