Like those long-forgotten app subscriptions and the gym membership you keep meaning to get back to, the transaction costs of making payments are a mostly invisible drain on your operations.
Many operators simply see them as an immutable cost of doing business, without exploring recent developments in making payments in both domestic and foreign currencies.
The truth is there are other options that still use established, secure payment rails, but do so at a much lower cost than the typical business bank.
Centtrip – sometimes better known for its payment card – has offered a payments and foreign exchange (FX) service since its launch, ten years ago.
Today, many yacht management and crew management businesses choose Centtrip for efficient domestic and international payments, saving themselves and their clients thousands of euros per yacht per year.
Here’s how it works out.
Save money on transaction charges
Sending even regular payments like crew salaries can be a complicated affair for yacht operators. It can involve money flowing from the ultimate beneficial owner (UBO) to the yacht management company, then on to the crew employment agency and finally, in many smaller payments, to individual crew members. Any or all of these stages can be in different jurisdictions with most major yacht managers based in Monaco and crew employment agencies often in offshore locations like Guernsey or Isle of Man.
Banks typically charge around €30 per SWIFT transaction for international payments. Often, they justify these fees saying the monies have to be sent via the SWIFT network instead of utilising payment rails such as SEPA to facilitate the movement of Euros. We’ve even seen as high as €80 for a single transaction. For a crew of 20, paid monthly, that amounts to €19,200 per year in transaction fees, just to pay crew salaries.
Adding in other operational costs, a 70m yacht is probably making 100 to 150 individual payments per month. At an average €30 per payment, 150 payments per month equate to transaction fees of €54,000 per year.
Centtrip often achieves considerable savings per bank payment for our clients, in some instances as much as €10, which would equate to €18,000 per vessel per year. This, alongside our efficiencies through the platform and batch uploads, means clients are paying less and spending less time on banking.
If payees are also on Centtrip, then payments are completely free of charge via Centtrip Now. These payments are also not constrained by banking cut-offs or time to reach the beneficiary’s account.
Save money on foreign exchange rates
How often have you looked at a foreign payment received and thought it was significantly less than you expected?
The exchange rate that banks apply when translating foreign currency is very different from the market rate. In fact, a margin of several per cent is common.
By contrast, non-bank payment and foreign exchange specialists like Centtrip typically charge much lower margins.
A general rule of thumb is that the annual operating cost of a superyacht is around 10% of its value.
If a yacht is worth €18,000,000, then annual operating costs would be around €1.8 million.
If a quarter of that is in a foreign currency, and if Centtrip reduces the FX margin from 2.0% to 0.5%, the annual saving is €6,750.
From lower transaction fees and fairer FX, yacht operators could save around €25,000 per vessel per year with Centtrip.
Save time with API integration and batch-file uploads
No more time-consuming, and error-prone, rekeying of data. With Centtrip’s API, clients can send payment instructions direct from their finance or payroll systems to their Centtrip account.
The Centtrip platform also integrates directly with leading marine management packages like DEEP Blue Soft and Aquator. Alternatively, they can upload payment batch files, in multiple currencies, to Centtrip for processing.
At every step, Centtrip saves time for client’s finance and payroll staff as they process regular, and one-off, payments.
And enjoy excellent, knowledgeable service too
Always more than just an app, Centtrip is fintech with a face. Our customer support staff have a deep understanding of the unique pressures, challenges and opportunities of the superyacht world. From simply advising on the lowest cost or fastest route for international payments, to helping to solve the thorniest support questions, we’re always here to help.
“Speed and service are paramount within the yachting industry. The client support team at Centtrip are second to none, always on hand to make our lives easier and subsequently our clients’. The technology platform that Centtrip has, is clear, fast and effective. It’s great to have a financial partner that is not only trustworthy and competent but that also has an in depth understanding of the luxury yachting space.”
Phillip Holden, Management Director, Bluewater Yachting
Want to know more?
For more information on how Centtrip can help your yacht and crew operations save time and money, please get in touch today.