Contractors’ Questions: Why don’t clients like sending money to my foreign bank account?

Contractor’s Question: I'm from Turkey, working independently in SEO/Web/Digital, mainly dealing with customers located in the EU. I would like to have a bank account in a European bank as my clients sometimes have doubts about sending money to my Turkish bank account and prefer Eurozone banks.

My problem is that it’s obviously difficult to open a European account without EU documents and going abroad is largely impossible due to travel restrictions introduced to  combat the covid-19 pandemic. What should I do and why might clients be reluctant to send cash to my Turkish account?

Expert’s Answer: Turkey’s sometimes cumbersome banking system, concerns over international transfer fees and the volatility of the Turkish Lira can make some people reluctant to initiate direct transfers to Turkish bank accounts. This may explain the reluctance of your clients.

However, you do have the option of opening a corporate account with a reputable currency transfer specialist.

Many currency transfer providers operate on a global scale, giving you the ability to create an account without leaving Turkey.

That being said, as Turkey is generally deemed a high-risk destination some providers may not be able to facilitate this, while others will ask you to provide proof of your identity and address in order to open an account. Some providers will require more documentation than others, but they’ll be able to tell you what information is needed from the outset.

Once you’ve successfully opened an account with a currency transfer specialist you can direct your clients to make their payments straight to that account. Your clients will be able to settle their invoice in their local currency, and the provider will handle converting the funds to ‘TRY’ and transferring to your Turkish bank account. Good luck!

The expert was Matt Andrews, senior currency analyst with international money transfer firm TorFX.