Business money transfers

Regardless of the size of your business you may find yourself in a position where you need to make an international money transfer (IMT), 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 IMT 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. An IMT specialist will send your money safely, securely and cheaply.

Below are a list of pros and cons for each option to help you make an informed decision when sending money abroad. Here is the business international money transfer providers you can compare on Mozo.

Pros:

• They offer the best value for money with access to competitive exchange rates
• Experienced market professionals will provide you with all the information you need to manage your company’s foreign exchange more cost effectively

• Fees are a lot more modest compared to the banks and some providers might even waive them if you meet particular requirements

• Plenty of transaction options including forward contracts and market orders

Cons:

• Some providers have a minimum and maximum transfer limit which may not work in your businesses favour
• Entirely online, so you cannot go to a teller and get help

Pros:

• If you need to send money overseas in a hurry the company’s bank can be a good option
• For a one off small amount a bank can be convenient and reliable

Cons:

• The bank’s exchange rate is often a lot more expensive than a foreign exchange provider
• Banks usually charge high conversion fees as well as a sending and receiving fee
• The bank’s rates may ‘change without notice’ so you may not end up with the red hot rate you expected

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.

• Exchange rate: First and foremost take a look at the exchange rate the provider is offering. Take the time to compare and calculate how much you’ll receive for your Australian dollars. A few cents difference in the exchange rate could save your business thousands of dollars. Remember, the higher the exchange rate, the more money you will get.
• Fees: There are several fees associated with making an international business money transfer. But if you do your research a few foreign exchange specialists waive these charges if you meet a certain criteria. Fees to be wary of include: a transfer fee, a sending and receiving fee, a cancellation fee and an amending fee
• Transfer methods: In this day and age there are plenty of methods for transferring money overseas these include; online, on the phone, in person or even via an app
• Turnaround time: This is the time it takes from the moment your transaction has been processed to the time your recipient receives it. Gone are the days of waiting weeks to get a transaction cleared, these days the transfer speed can range from 1 to 5 days. If you need to send it quickly, talk with your provider and see if they can speed up the process but it may cost you. Some providers allow you to track the transaction online
• Transfer limits: A lot of providers have a minimum and maximum amount you can transfer
• Pickup methods: The usual method is by electronic funds transfer but some services allow the recipient to pick up cash from a branch.

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:

• Register and set up an account with a foreign exchange provider
• Decide how much you want to transfer and to which country you need the money sent
• Confirm and make sure you are happy with the costs and exchange rate of the transfer
• Provide details of the recipient including their name and bank details
• Book the deal!