What are local-in and local-out payments?

Enter "local-in, local-out" (LILO) payments.

LILO payments leverage local payment networks and clearing systems in each country or region. Instead of relying on complex international banking systems, LILO payments allow businesses to accept funds directly into a local bank account and also disburse payments through local payment rails. Quite simply this reduces reliance on intermediaries and simplifies payments a ton.

Just think, you could be operating in one country, but have multiple company-named bank accounts in various currencies around the world without having to set up any local entities. This will not only improve your payment collections from customers - as they can pay you quickly using a method familiar to them - it will also improve your payouts to suppliers as you now can now have an account connected to their local banking network (which usually means little to no fees for them too!)

Here's a working example...

Imagine you're a US-based company selling products to your domestic market in USD, however all your suppliers are based in Europe and need to be paid in EUR.

LILO means you can have a USD account in the US to collect payments from your customers via ACH, and also have a EUR account based in the Eurozone to pay your suppliers via SEPA (see here for more details on SEPA). So customers are paying you locally within the US, and your suppliers are receiving funds locally within the eurozone.

This will turn your domestic US-based operations into a truly global operation with no need to set up any overseas entities. This will not only help your business in terms of costs and time efficiency but your customers and suppliers will see benefits too.

How does Flowbrite fit into all of this?

That's easy - Flowbrite offers LILO solutions by providing you with:

• Local bank accounts. We can offer you local company-named bank accounts in the US, Canada, Europe, and the UK, across multiple currencies. This enables you to receive payments directly in local currencies from clients/suppliers.
• Local payout capabilities. Flowbrite facilitates payouts to over 50 countries using local payment networks (and over 180 using using SWIFT), ensuring your suppliers receive funds quickly and efficiently in their own currencies.

Benefits of using Flowbrite for LILO payments

• Reduced fees. Flowbrite can help reduce the fees associated with sending and receiving international payments, this is by using local networks and by offering lower wire fees over SWIFT.
• Improved exchange rates. Flowbrite is able to provide incredibly competitive exchange rates to businesses around the world.
• Improved customer experience. Invoice your customers in their own currency and allow them to pay via local payment networks where possible.
• Enhanced supplier relationships. Delight your suppliers with fast and efficient local payouts.
• Streamlined operations. Work with a single provider online or over the phone for all your international accounts and payments rather than multiple banks.

Flowbrite's LILO solutions simplify international payments by providing you with local bank accounts and global payout capabilities. This enables you to receive and send payments in local currencies, reducing fees, improving customer experience, enhancing supplier relationships, and streamlining overall operations.