Company
Expanding into international markets presents exciting opportunities for exporters, but it also brings a unique set of financial challenges—chief among them, collecting foreign currency payments efficiently. From currency fluctuations to slow settlements and high conversion costs, exporters often face hurdles that can eat into their profits and disrupt cash flow.
The good news? There’s a smarter way to collect international payments. In this guide, we’ll break down the common challenges exporters face and how businesses can streamline their FX collections for faster, more cost-effective transactions
Many exporters face hurdles when collecting payments from African buyers. Here are some of the biggest challenges:
Many African businesses struggle with cross-border payments due to limited access to international banking networks.
Your Nigerian buyer initiates a bank transfer for a large order, but because their bank has limited access to international networks, the payment takes over a week to process. Worse still, additional transaction fees are deducted along the way. Now, you’re considering turning down the whole order because you can’t afford the delays and hidden costs cutting into your margins. The longer the payment takes to arrive, the more strain it puts on your cash flow, making it harder to fulfill future orders or reinvest in your business. If this happens repeatedly, you might start avoiding certain markets altogether—limiting your growth potential in Africa.
Currencies like the Nigerian Naira (NGN) and the Kenyan Shilling (KES) can experience high volatility. If you’re invoicing in local currencies, exchange rate fluctuations can impact the final amount you receive. Additionally, multiple conversions (e.g., NGN → USD → EUR) can increase FX costs.
Regulatory frameworks vary widely across African countries, and some governments impose strict FX controls. If you've ever had a buyer tell you they couldn’t remit payment due to local restrictions, you understand how compliance hurdles can disrupt your business. Without a reliable payment partner that understands these regulations, navigating them can be a major headache.
Traditional bank transfers from Africa to countries in other continents can take days or even weeks. Imagine you’ve lined up a new supplier for raw materials, but you can’t place an order until your last payment from Kenya clears. Traditional bank transfers can take days—or even weeks—leaving your business in limbo. These slow settlements slow down your cash flow, make financial planning difficult and can put unnecessary strain on your operations.
At Cedar Money, we simplify FX collections for exporters selling to Africa by providing a direct, reliable, and cost-effective way to receive payments. Here’s how:
With Cedar Money, you can collect payments from 9 African countries (Nigeria, Kenya, Tanzania, Ghana, Rwanda, Ivory Coast, South Africa, Uganda and Zimbabwe), in their own local currency and receive funds in major currencies like USD, EUR, GBP and more to over 130 countries—eliminating the hassle of dealing with multiple banking relationships and unnecessary conversions.
Unlike traditional financial providers, Cedar Money ensures fast, direct settlements within T+1. Once payments are processed, funds are sent to your designated bank account quickly, helping you maintain steady cash flow.
By leveraging Cedar Money’s cross-border payment network, you get access to competitive FX rates and avoid hidden fees. Our transparent pricing structure ensures you always know how much you’re receiving.
Pro tip: you can get instant notifications for a target FX rate when you turn on Rate Alerts on your Cedar Money dashboard.
We handle all the complex compliance requirements, so you don’t have to worry about FX controls or transaction monitoring. Our expertise ensures smooth and compliant transactions across multiple African markets.
For businesses exporting to Africa, FX collections don’t have to be a barrier to growth. With Cedar Money, you can eliminate unnecessary delays, reduce FX costs, and simplify the entire process.
Ready to streamline your FX collections? Join thousands of businesses simplifying their FX collections with Cedar Money—get started on Cedar Money!
Please note: Cedar does not hold or transmit any funds and does not hold MSB or money remittance licenses.
