Paying international suppliers can be a balancing act between managing foreign exchange, minimising costs, and maintaining smooth business relationships. Whether you’re importing raw materials from China or sourcing products from Europe, having a solid system for making scheduled payments to suppliers is essential, especially if you’re involved with import and export trade.
China remains Malaysia’s largest single source of imports, and it was the biggest contributor to Malaysia’s import growth in early 2026, according to the Department of Statistics Malaysia. For Malaysian SMEs, that makes getting supplier payments right, particularly to China, one of the most consequential parts of running an import business.
In this guide, we’ll explore popular B2B payment methods for suppliers dealing in USD, CNH (offshore Chinese yuan) and EUR, and how you can use tools like multi-currency accounts and automated billing to simplify the process.
1. Telegraphic transfers (TT)
A telegraphic transfer (TT), also known as a wire transfer, is a bank-to-bank electronic transfer of funds using the SWIFT network.
How it works:
- Funds are transferred electronically from your business bank account to your supplier’s overseas bank account.
- Transfers typically take 1 to 5 business days depending on intermediary banks, time zones, compliance checks and currency conversion delays.
Best for:
- One-off or high-value supplier payments in major currencies like USD, CNH and EUR.
- Suppliers who require upfront payment or deposits to their bank account.
Costs to consider:
- Transfer fee (RM20 to RM100 or more per transaction).
- Intermediary bank charges.
- Currency conversion fees and exchange rate markups.
Benefits:
- Secure, with SWIFT code confirmation.
- Widely accepted for global trade.
- Clear documentation of the entire payment.
Risks:
- Errors in supplier details can cause delays or fund losses.
- Costly for frequent or smaller payments.
2. Multi-currency business accounts
A multi-currency business account lets you hold and pay in multiple currencies, such as USD, CNH and EUR, from one account. This removes the hassle of frequent currency conversions and additional fees, making supplier payments faster and more efficient.
How it works:
- Open a multi-currency account, such as a WorldFirst World Account.
- Receive, hold and pay in multiple currencies without conversion costs.
- Send payments directly to suppliers at lower cost.
- In some cases, transfers are routed within a local network rather than the SWIFT network, depending on the provider.
Best for:
- Regular international transactions.
- SMEs looking to minimise FX risk and fees.
- Batch payments to several suppliers at once.
Costs to consider:
- Annual maintenance fees, though some providers, including WorldFirst, don’t charge these.
- Minimum deposit or balance requirements.
- Currency conversion charges if converting between currencies.
Benefits:
- Better control over exchange rate management.
- Streamlined payment processes.
- Better accuracy and speed of transfers.
- Manage payments, collections and FX in one platform.
Risks:
- Complex account requirements or documentation with some providers.
- Limited currency options with some providers.
Open a WorldFirst Account to pay in USD, CNH and EUR with no annual fees, no minimum balance and no hidden costs, at competitive rates. Enjoy instant, free transfers to other WorldFirst users, saving you time and money with every payment.
Explore WorldFirst’s business payment solutions today.
3. Letters of credit (LC)
A letter of credit is a financial guarantee provided by a bank on behalf of the buyer, ensuring that the seller receives payment once conditions are met.
How it works:
- Apply for an LC from your bank.
- The LC outlines terms of delivery and payment.
- The bank releases payment to the supplier after documents are verified.
Best for:
- Large transactions, for example over USD50,000.
- Working with new or unverified suppliers.
Costs to consider:
- Bank processing fees, typically 0.75% to 1.5% of invoice value.
- Legal or document vetting fees.
Benefits:
- Reduces risk for both buyer and seller.
- Payment is only made when delivery terms are fulfilled.
Risks:
- Complex documentation.
- Expensive for smaller businesses.
4. Escrow services
Escrow holds the buyer’s payment until goods are delivered and confirmed, then releases the funds to the seller.
How it works:
- You pay into a third-party escrow account.
- Funds are released to the supplier once goods are received or conditions are met.
Best used for:
- Buying from online platforms.
- First-time transactions with new suppliers.
Costs to consider:
- A 3% to 5% transaction fee, often paid by the supplier but passed on to the buyer.
Benefits:
- Adds a layer of security.
- Good for small transactions or trial orders.
Risks:
- Limited dispute resolution options.
- Not commonly used for high-volume trade.
5. Automated debits and billing solutions
For regular purchases or retainer-style agreements, automated billing or debit authorisations can be arranged with select suppliers.
How it works:
- Set up recurring payments through your payment provider.
- Automate invoice processing and reconciliation.
Best used for:
- Recurring monthly orders.
- Subscription-style business relationships.
Costs to consider:
- Varies depending on your bank or platform.
Benefits:
- Saves time on manual transfers.
- Reduces late payments.
Risks:
- Requires strong supplier trust.
- Less flexibility once scheduled.
Don’t overlook the receiving side of B2B payments
Most guides to B2B international money transfer focus on paying suppliers, but if your business also invoices overseas customers, marketplaces or platforms, how you receive payments matters just as much for cash flow.
A multi-currency account with local receiving account details lets customers pay you as if you had a local bank account in their market, without your funds being automatically converted to ringgit the moment they arrive. That means you can hold USD or EUR revenue and use it directly to fund upcoming supplier payments in the same currency, rather than converting to MYR and back again and paying the FX spread twice.
Tips and tools to manage supplier payments effectively
Efficient supplier payment management isn’t just about selecting the cheapest method. It also involves tools and strategies to streamline the process and reduce operational risk.
1. Use payment automation platforms
WorldFirst allows integration with Xero, Oracle NetSuite and other accounting software, allowing businesses to schedule payments, track invoices and budget.
2. Monitor currency volatility
Use FX tools or rate alerts to take advantage when the exchange rate is in your favour. For businesses with predictable, recurring supplier payments, forward contracts can also lock in a rate ahead of time, protecting your margin from currency swings between order and payment.
3. Set clear payment terms
Establish payment schedules, penalties for late payments and preferred methods upfront with each supplier. This avoids confusion and builds trust.
4. Segment suppliers by payment priority
Group suppliers based on urgency, payment frequency and risk profile. Use faster or more secure methods, like TT or LC, for high-risk suppliers, and reserve batch payments or automated billing for trusted, recurring relationships.
5. Track all payments in one dashboard
Centralise all cross-border payments using a platform that lets you visualise cash flow and reconcile with your books.
Choosing the right payment method
When evaluating how to pay international suppliers, consider:
- Currency preferences.
- Trust level with the supplier.
- Payment frequency and invoice volume.
- Risk appetite and contract size.
- FX exposure and rate volatility.
As a general guide, TT and letters of credit tend to suit larger, less frequent payments or new supplier relationships where security matters more than speed. Multi-currency accounts and automated billing suit regular, recurring payments where cost and efficiency matter most. Escrow sits in between, useful for first-time online orders where neither party has an established relationship yet.
At WorldFirst, we make it simple to pay suppliers and receive business payments. Create a multi-currency business account to track shared expenses, automate payments and more, all from a comprehensive, user-friendly dashboard.
Why consider WorldFirst?
- Easy onboarding: 100% online account opening.
- Low cost: $0 set-up fees, $0 minimum account balance, $0 receiving fees, $0 annual fees.
- Fast payments: same-day supplier payments to China, Hong Kong (USD, CNH, HKD), the US (USD) and Europe (GBP, EUR) through our local network. Across the platform, 80% of international payments land on the same day.
- Seamless payments to 1688.com using World Pay (跨境宝), for instant payment to Chinese suppliers on one of the largest B2B wholesale sourcing platforms.
- A World Card for business spending: pay expenses like freight, customs duties or inspection services with zero FX fees across 10 supported currency balances, alongside your World Account.
Ready to take control of your international payments? Register for a WorldFirst Account today.
FAQs
1. What is the best way to make a B2B international money transfer?
There isn’t a single best method; it depends on the payment. Telegraphic transfers and letters of credit work well for large, infrequent or high-risk payments, while a multi-currency account is usually more cost-effective for regular supplier payments, since it avoids repeated FX conversion and can settle through local payment networks rather than SWIFT.
2. How can Malaysian SMEs reduce the cost of paying suppliers in China?
Paying directly in CNH, rather than converting from MYR through a traditional bank each time, is one of the most effective ways to reduce costs, since it avoids the FX markup traditional banks apply on top of the mid-market rate. A multi-currency account that lets you hold and pay in CNH, alongside a direct integration with platforms like 1688.com, can also speed up settlement.
3. Is a multi-currency account better than a telegraphic transfer for supplier payments?
For one-off, high-value payments to a new or unverified supplier, a telegraphic transfer or letter of credit may offer more security. For regular, recurring supplier payments, a multi-currency account is typically cheaper and faster, since it can avoid repeated conversion fees and route payments through local networks instead of SWIFT.
4. Is WorldFirst a bank?
No. WorldFirst is not a bank. Ant International has received approval from Bank Negara Malaysia to operate WorldFirst in Malaysia under a Class A Money Services Business licence, and customer funds are handled under that regulated framework rather than as bank deposits.
5. How long does a B2B international money transfer take?
A traditional telegraphic transfer via SWIFT typically takes 1 to 5 business days, depending on intermediary banks and compliance checks. Multi-currency accounts that use local payment networks can settle much faster. With WorldFirst, 80% of international payments land on the same day.
