Stop wasting time paying your foreign contractors individually and fighting with the banks
How much is your time worth, and how much of it do you waste each month processing transactions to pay your foreign contractors? If you need a more efficient way to send funds to Colombia, look no further. Ongresso’s Contractor Payment Service (CPS) will streamline your monthly payments tenfold.
As international trade, immigration, and globalization continue to connect our world, transferring money across borders has become a much more common practice. Importers and exporters send and receive payments, individuals move to countries with stronger currencies to send remittances to their families back home, and multinational firms expand their presence to foreign countries and transfer funds to pay their employees and operating expenses. In Colombia, receiving international payments has an extra layer of difficulty that can make these transactions more challenging.
Click the video to see how CPS works
Money Transfers to Colombia Involve Additional Hurdles
Since the days of Pablo Escobar, it has been no secret that Colombia is home to a very large illegal drug market. The existence of this black market has led to massive amounts of money laundering which the government has been combating ever since. One method used to discourage and discover money laundering schemes is to closely monitor all foreign currency transfers entering Colombia. The banks are obliged to verify the source and purpose of funds being transferred from abroad and conduct KYC (‘know your customer’) checks as part of their due diligence. The recipient of the transfer is responsible to provide any documents the bank might ask for during this process. Any inconsistency could raise a red flag and result in a request for additional documentation or the rejection of the transfer.
This tedious process has led to delays and frustrations for businesses and investors attempting to send money to Colombia. Traditionally, banks have been the most common, and oftentimes only, gateway to wire money internationally and conduct the currency exchange transaction. But nowadays, there are a number of digital cross-border payment platforms that are easier and cheaper: Paypal, Xoom, Remitly, World Remit, Transferwise, Moneygram, Western Union, etc.
Despite having such a variety of options, transfers to Colombia remain a troublesome issue as many of these sites either do not offer their service in Colombia (they have enough business elsewhere to be bothered with the local restrictions) or have inflated fees when they do.
Additionally, for foreign businesses attempting to pay Colombian contractors, the task of paying multiple people once or twice per month is time consuming. Even once the transactions are approved, this non-core activity can eat up an entire afternoon, and their bank back home might also start asking questions about why they are constantly sending money to Colombia, a country – as mentioned above – still associated with drug trafficking and money laundering.
Streamline Your Payment Transactions to Colombia
To assist businesses with these payments, Ongresso offers a Contractor Payment Service that allows them to make one lump sum payment each month. Ongresso then makes the payments on behalf of the client to each contractor as instructed. Since Ongresso has a long-standing relationship with local banks, the vetting process to approve the international payments is typically much quicker and becomes even easier after the first transfer has been approved. In addition to establishing the flow of payments, Ongresso also takes care of the currency conversion process (also called ‘monetization process’) and can get the best available exchange rates when using this service.
If your outsourcing or nearshoring efforts have led you to hire contractors in Colombia and these payments have been a source of frustration and wasted time, send us an email with your story at email@example.com and we’ll get you set up in no time.
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