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Making sense of global mobility payments

Why does making global mobility payments have to be such a problem?

Perhaps the biggest financial management problem facing global mobility is making safe, timely and accountable payments internationally. It is difficult as expenditure inevitably takes place in another country, where you may not have your own team in place to expedite matters. It’s all too easy to be exposed to risk because the most often used go-to solutions simply aren’t effective.

Giving assignees the payment headache

Very often, the first quick fix is to ask the assignee to use their own money to get things paid. This doesn’t work for several reasons.

For head office it means a downward spiral of creating and chasing exceptional processes, which, as we all know, is both time consuming and inaccurate, exposing the company to risk.

For assignees, it means the extra administrative and financial burden of budgeting their personal money to cover what should be corporate costs; taking their eye off the work they are there to do. Also this doesn’t help your talent management because their becoming part of the problem isn’t in the spirit of the deal you made with them when they took on the assignment.

Putting a strain on supplier cash-flow

Another often seen bodge is to ask in-country service providers to deal with the immediate problem, and add it to their bill later. This decreases your control by adding yet another exceptional process, and is almost certainly outside the scope of any supplier agreement. Suppliers obviously don’t like this because it often feels like corporate bullying, and, like assignees, surprises make planning and financial management all but impossible.

The prepayment solution

Prepayment can solve this problem for everybody by regularising the process whilst, importantly for you, ensuring you have your hands on the purse strings at all times.

Prepayment empowers assignees, making them feel secure that they won’t run out of money by letting them have more autonomy and involved choices. Treating them like grown-ups in fact – works wonders for talent management.

The same goes for service providers. Putting accountable corporate funds into their hands gives them all the tools they need to make safe, planned and timely payments on your behalf. The reduced strain on their cash flow could actually keep them in business, making you their most valued client, which should be reflected in their service levels.

How can you make prepayment work for you?

By talking to us. Uniquely we have integrated the accountability of Hessel Global Mobility Expense management with the versatility of a prepaid account and VISA backed card. This means for the first time you can safely make authorised corporate funds available anywhere, instantly and on demand. For simplicity and flexibility, payments can either be made virtually from the Globalmobility™ account, or as direct debit payments using physical cards, which can be branded in your livery.

Because the Globalmobility™ account is part of the established Hessel solution, you can rest assured that you’ll always be fully informed and in control. The checks and balances we have in place mean you’ll be able to interrogate the complete global data stream for reconciliation of expenditure, cost centre recharging, tax, compliance and ad-hoc reporting.

We think our Globalmobility™ account and card is going to change the face of global mobility by solving some previously intractable problems. For example you can use the Globalmobility™ account to:

  • Give your assignees a ‘soft landing’ in their host country until their own banking arrangements are regularised.
  • Deliver lump sum or allowance payments to empower assignees to make choices on timing and expenditure.
  • Put corporate funds into the hands of your service providers or distant cost centre managers and regularise those ad-hoc payments. No more disappearing benefits for the assignee that never make it onto the tax return.

If you’d like to know more about how our Globalmobility™ prepayment account and card might work for you get in touch with me, Geoff Davidson – 01892 669901, Geoff.davidson@hessel.co.uk