A leading semiconductor manufacturer based in Ontario was struggling with a common challenge in global business: managing cross-border payments efficiently. With suppliers across Europe and a parent company in the USA, their financial operations were bogged down by wire fees, unfavorable exchange rates, and payment delays.

This is the story of how Finofo helped transform their international payment operations, enabling real-time transfers and significant cost savings across their global supply chain.

The global payments challenge

This leading manufacturing company specializes in producing semiconductors and hardware for supercomputers. With its parent company in the USA and an extensive network of European suppliers, the company's operations span multiple currencies and jurisdictions, making efficient financial management crucial for their success.

Accounts payable

The company faced significant challenges in managing funds between its Canadian and US entities and streamlining internal payments to suppliers worldwide. When discussing these challenges, the company's financial controller highlighted a key issue: "We have many global suppliers in Europe but couldn't open a Euro (EUR) account with our bank."

Accounts receivable

Receiving payments from US customers also posed challenges. The company incurred wire fees for every payment received, and intra-company transfers with their parent company faced delays and additional wire fees, further complicating financial operations. Additionally, customers were burdened with wire fees for each payment they made, creating frustration and inefficiency.

These challenges hindered the company’s ability to plan finances and pay suppliers efficiently. Unfavorable rates, delayed payments, strained supplier relationships, and a high manual workload were recurring issues.

The introduction of Finofo's platform marked a significant turning point for the company's financial operations. Our platform offered:

Opening local EUR accounts

Finofo facilitated the opening of unique local bank accounts in Europe, enabling the mid-market manufacturing company to convert CAD and USD to EUR and hold these funds. This allowed them to pay their European suppliers in real time without incurring wire fees, enhancing supplier relationships and improving their ability to negotiate favorable payment terms.

By integrating Finofo into their accounting workflow, the company could seamlessly handle their transaction volume of approximately 30 transactions per month, valued at close to €2 million. They also eliminated wire fees and delayed payments, achieving potential savings of nearly $9,000 annually on wire fees.

Opening a USD account domiciled in the US

Streamlining finances with the parent company

‍Finofo enabled the company to open a USD account domiciled in the US with ease. This allowed real-time fund transfers between the company and its enterprise grade parent entity via local ACH, eliminating wire fees and waiting periods. With 10–15 intra-company transfers per month, this solution saved approximately $2,500 annually and facilitated seamless, real-time transfers.

With the USD account, the manufacturing business could receive customer funds like a local business through ACH transfers, making the customers happy as they no longer had to pay wire fees. Approximately, they received 30 customer funds monthly potentially increasing their profits by another $9000 which was previously eaten up as wire fees. 

Efficient currency conversion‍

Our platform provided seamless CAD to USD/EUR conversions with fixed FX spreads. Finofo's flat pricing helped the semiconductor manufacturer improve profit margins and enhanced financial efficiency. 

International payments streamlined

With Finofo streamlining their financial operations, the Ontario based manufacturer has become adept at managing cross-border transfers. They can now efficiently convert CAD to EUR and maintain funds in dedicated European accounts. This capability allows them to strengthen relationships with global suppliers, enhance profits, and facilitate seamless money transfers with their parent company.

Getting onboard with Finofo was an exceptional experience. From opening an account and completing the KYB process to adding our global suppliers and making our first payment, the entire process was incredibly smooth. The Finofo team was always there, making everything simple and easy!

Onboarding experience for the finance teams at the manufacturing business

By eliminating costly wire fees and unfavorable exchange rates, the mid-market manufacturer has greatly simplified its Accounts Payable and Receivable processes.