Best method to pay a uk supplier?

[bongo101]

Hi im setting up a small wholesale business, my main supplier is in the uk,
whats the best (most cost effective) method for sending a business payment for goods between ireland and the uk?
Im with AIB currently,
> Is a standard transfer the best? i havent made a payment yet, and AIB dont quote full fees until after the payment is made (because of thrid party banks costs.)
>paypal? they have bad rates, but its hassle free?
> setting up a uk bank account? do any banks in dublin let you setup a sterling account? AIB offer this but, have plenty of fees?
Any advice to protect me from transaction fees, conversion/transfer fees and the exchange rates?
Thanks very much conor.

 

[marksa]

if you are going to be making regular and a significant number of payments - e.g. 20 per month of average GBP1000 each then you would probably be best with a GBP currency account. Then you can make payments out of the account as and when you need to. On the flip side, you would need to fund the account - i.e. you need to sell euro and buy GBP in an fx transaction. The advantage being that you do this as e.g. one trade for GBP20k and get a better exchange rate than the smaller payments. You can also look at booking a forward exchange contract to guarantee you a set amount of GBP for a determined point in the future - e.g. 6 months.

As for providers, all the main banks (that are left!) provide GBP accounts. Personally I bank with NIB who have a great technology platform that allows me to see all my accounts together, including GBP account, make payments realtime in GBP etc. fees are okay, and if necessary you can get a GBP cheque book on the account, although making the payment direct to the supplier would be more productive and efficient.