The Supplier Payment Playbook For Smooth Importing

Key takeaways

• Import margin surprises usually come from timing gaps, weak approvals, and messy supplier payment data, not “the market moved.”

• Clean beneficiary details and structured payment info reduce repairs, delays, and supplier disputes as payments move through the chain.

• A light operating model for deposits, balances, and invoice runs can make import costs more predictable without adding heavy complexity.

Importing is full of moving parts you cannot control: port congestion, production delays, inspection holds, paperwork. The part you can control is how your money moves. And for many importers, that is where the margin shock starts.

A supplier quote looks fine. The PO is approved. Then a deposit is needed quickly, documents arrive late, the conversion happens under pressure, and finance is left explaining why landed costs drifted.

This guide is about making supplier payments boring in the best way: predictable timing, clean data, fewer repairs, and fewer “we paid it, why is it not there?” emails.

Why supplier payments create margin surprises

Most import flows include multiple payments: deposits, progress payments, final balances, freight, and local charges. Each step has its own timing and documentation. If your internal approvals or payment data are inconsistent, you end up paying later than planned, or you pay with incomplete details and trigger a delay.

Two industry shifts make this more visible than it used to be:

• More transparency and tracking expectations in cross-border payments, including end-to-end tracking capabilities like SWIFT gpi.²

• More focus on richer, structured data in payment messages, as ISO 20022 becomes the global standard for cross-border payments, with key milestones around the end of the coexistence period on 22 November 2025.³

The good news: predictable supplier payments are mostly an operations problem you can solve with process and data, not with a quant team.

Start with the trade terms, not the invoice

If you want fewer supplier disputes and fewer “why are we paying this now?” moments, start with the trade terms in your contracts.

Incoterms® 2020 define how buyers and sellers split responsibilities, costs, and risk in international trade.⁴ That matters because your payment timing usually follows your risk and document timing.

If a contract says you pay the balance on a document trigger, your internal workflow needs to treat that as a deadline. If you treat everything like a standard invoice payable, you will always be rushing at the end.

Quick snapshot: why this matters to payments

Use Incoterms as a common language between procurement, ops, and finance. It reduces internal debate when timelines get tight.⁴

Build a supplier payment file that prevents repairs

Many “payment delays” are self-inflicted. Wrong bank details, missing address fields, unclear purpose, or inconsistent references can trigger investigations and repairs. ISO 20022 places more emphasis on structured data fields, which can improve straight-through processing when data quality is good.³

Create a supplier onboarding file that is treated like a controlled master record, not an email thread.

Supplier onboarding checklist

• Legal entity name exactly as held by the bank

• Beneficiary address (complete, consistent)

• Bank name and branch details

• Account number format and country requirements

• SWIFT/BIC and any required local routing details

• Currency preferences (which currencies they accept)

• Invoice reference rules (what they expect to see)

• Proof of bank details (documented source, verified internally)

Treat changes to supplier bank details as a controlled event. That is where fraud and errors cluster.

Use “payment moments” to design your workflow

Instead of one generic accounts payable process, define distinct payment moments. Each moment gets its own controls.

Deposits

Deposits are operational. They protect production timing. Your goal is speed without chaos.

Controls that work:

• Pre-approved deposit thresholds for trusted suppliers

• A standard deposit reference format tied to the PO

• A “ready-to-pay” vendor pack already complete before the request arrives

Balances and milestone payments

These are where you want predictability.

Controls that work:

• A weekly cadence for approvals

• A clear rule for when FX conversion is decided

• A standard document list that triggers payment readiness

Freight and local charges

These often create noise because they involve different providers.

Controls that work:

• Separate vendor categories in your ERP

• A dedicated payment run for logistics providers

• Clear coding for landed cost allocation

Make FX execution a process, not a scramble

You do not need to become a hedge fund. You need to stop converting at the worst possible time because your approvals slipped.

Practical approaches that many SMEs use:

• Stage conversions when you have multiple payments over time

• Hold working balances in repeat currencies so you are not converting every invoice

• Schedule payments so settlement aligns to due dates instead of last-minute execution

If you have larger, committed amounts with known dates, forward-style tools can reduce uncertainty for that portion. Keep it tied to committed exposure, not guesses.

Use tracking and transparency to reduce supplier escalations

Supplier escalations are expensive. They burn time across finance, procurement, and ops.

Payment tracking capabilities, such as those described for SWIFT gpi, are designed to improve transparency and enable action on delays.² That matters because even when your payment is correct, suppliers often want reassurance, especially for first-time transfers or high-value shipments.

Operationally, build a simple “supplier comms packet”:

• Payment confirmation details

• The exact remittance references used

• Who to contact internally

• A standard response timeline for investigations

You are not just sending money. You are sending confidence.

Common mistakes that cause avoidable costs

• Mistake: onboarding suppliers after you need to pay
  Result: rushed data, errors, and rework.

• Mistake: inconsistent references across invoices and payments
  Result: supplier cannot match payment, goods release is delayed.

• Mistake: treating deposits like standard AP
  Result: missed production slots or strained supplier relationships.

• Mistake: letting “urgent” override controls
  Result: the urgent payment becomes the fraud or error event.

FAQs

How do we reduce supplier bank-detail fraud risk?

Use controlled change management for bank details, verify changes through known channels, and avoid approving changes from email-only requests.

Should we pay suppliers in their currency or ours?

Match currency to commercial leverage and operational simplicity. If suppliers price better in their currency, paying in that currency can reduce embedded buffers, but you still need controls on timing and FX execution.

What is the simplest way to cut payment delays?

Standardize supplier onboarding, enforce complete beneficiary data, and use consistent remittance references. Better data supports smoother processing in modern payment messaging.³

Conclusion and how Xe helps

Importing will always have uncertainty. Your payment workflow should not add to it. If you standardize supplier onboarding, align payment timing to your trade moments, and treat FX execution as a process, you reduce margin surprises and supplier friction.

Xe Business can support more predictable supplier payments through:

• International payments for paying suppliers abroad

• Multi-currency accounts to hold and pay in repeat currencies

• Scheduled payments to align settlement with due dates

• Batch payments for cleaner invoice runs

• Risk tools for committed exposures when relevant

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The content within this blog post is for informational purposes only and is not intended to constitute financial, legal, or tax advice. All figures and data are based on publicly available sources at the time of writing and are subject to change. Actual conditions may vary depending on location, timing, and personal circumstances. We recommend consulting official government resources or a licensed professional for the most up-to-date and personalized guidance.

Citations

¹ Bank for International Settlements CPMI — Enhancing cross-border payments: building blocks of a global roadmap — (2020).
² SWIFT — Swift gpi — (n.d.).
³ SWIFT — ISO 20022 for Financial Institutions: Focus on payments instructions — (n.d.).
⁴ International Chamber of Commerce — Incoterms® 2020 — (n.d.).

Information from these sources was taken on February 3, 2026.