Article by Mozo
Regardless of the size of your business you may find yourself in a position where you need to make an international money transfer, be it a one-off occasion or on a regular basis. Reasons for making a business money transfer include; purchasing goods and services for your business overseas or paying royalties and wages.
So when sending money overseas for business purposes try and avoid the banks and find a foreign exchange specialist that suits your transfer needs. Shop around and compare international money transfer deals to save yourself time and more importantly money for your business. A provider will also limit your exposure to currency fluctuations, ensuring that your company will improve its profit margins.
When it comes to sending money overseas for business purposes there are two main options you can choose from; a bank or a foreign exchange specialist. As we mentioned above, you can save your business hundreds if not thousands of dollars by choosing a specialist provider over a high end bank. A bank has high overhead costs and hefty fees. A FX specialist will send your money safely, securely and cheaply.Here are a list of pros and cons for each option to help you make an informed decision when sending money abroad. Compare the market and save right here!
James has expanded his software development business to Japan and has employed 250 staff. As a small business owner he wants to do everything in his control to save money and increase the company’s profit margins. Currently he’s deciding whether it’s more viable to use an Australian bank to transfer the monthly staff wages or to open an account with a foreign exchange specialist. To get the best value for his Australian dollars James compared the differences between a bank and a foreign exchange provider.
|Bank||Foreign Exchange Provider|
1 AUD buys ¥79.4000 JPY
1 AUD buys ¥84.3167 JPY
Amount received for AUD$10,000
In person $30, online $22
As you can see from the table above, James will save time and money for his business by transferring the staff wages with a foreign exchange specialist.
Make sure you compare the day’s best exchange rates right here!
As a business owner we’re confident to assume that you’re always looking at methods to be more efficient and ways to save and make money!? So when you’re shopping around for a foreign exchange provider make sure you consider the following features. Each feature can make a huge difference in how much and how quickly your recipient will receive their money and subsequently that will result in more cash in your company’s pocket.
So you’ve found a provider that suits your business transfer needs; now it’s time to set up the account and send the money abroad! Regardless of which foreign exchange specialist you have decided to use the method is pretty much the same. Here’s how it works:
PayPal is a safe, trusted and affordable method for sending small one off transfers. The transfer is can be done electronically, only takes a couple of minutes but both you and the recipient will need a PayPal account. For convenience, you can also use your local bank but the exchange rate will be pretty poor and as we mentioned above their fees and charges are pretty large.
To save yourself time and more importantly money, a foreign exchange specialist such as OzForex, World First and CurrencyFair is definitely your best option.
This refers to an arrangement where you lock in the current exchange rate immediately with a legal binding of converting one currency for the other within 24 hours of booking the deal.
A limit order lets you set the exchange rate that you would like your money transfer to happen in. The provider will lock in the deal for you when the rate hits your goal.
The Society for Worldwide Interbank Financial Telecommunications (SWIFT) or a Bank Identifier Code (BIC) is an 8 or 11 digit code that identifies banks around the world. This code is used to transfer money between banks via international wire transfers.
A forward contract allows you to lock in an exchange rate today for a transfer that needs to occur in the future (between two days and twelve months from today), thereby protecting you against exchange rate movements.
Yes, you can check the status of your money transfer by checking in with your provider online or by phoning them.
As long as the recipient has not yet received the funds, you should be able to cancel the transfer but it may come as a charge. Check with your provider.International money transfer guides for business transfers