The handy tools making it easier (and cheaper) for Aussie business owners to grow internationally
Friday 30 November 2018
If you’re an Aussie business owner selling internationally, it’s safe to say you probably know more about exchange rates and international money transfers (IMT) than the average person.
And given that making and receiving payments in foreign currencies is a little different than transferring your mates cash for Sunday brunch, having a simple way to do it all is essential for any business owner.
Traditionally, you might have thought that leaving it to your local bank was the easiest way to go, but thanks to IMT specialists, like OFX and WorldFirst, Aussie business owners are doing it all themselves.
The OFX Global Currency Account is a multi currency account which allows business owners to make same currency payments and pay suppliers, vendors or taxes directly from their account.
“Our main focus is on eCommerce, so anyone that sells via their website or internationally, as well as exporters who are receiving business payments,” said OFX Partnership Manager, Ed Wiley.
“The Global Currency Account enables an Australian company to get to access to local receivables on an international scale and to link up marketplaces like Amazon.com or local payment gateways, such as PayPal and Shopify payments in the country they sell into.”
The account features 6 local bank accounts for the world’s most popular markets, including USD, EUR, GBP, CAD, HKD and AUD and has no opening account or ongoing fees.
“There’s a multi currency account with your local bank and that’s what people probably mostly confuse it with."
“The big difference is that those bank accounts are held in Australia, so it costs anyone who wants to pay to those bank accounts anywhere from $20 and upwards, because they treat it as an international wire transfer, where as OFX’s Global Currency Accounts are held in the country of the currency e.g. USD account held in the US.”
Sharp competition ahead
And it appears that other providers are playing catch up, developing products that are giving the big banks a run for their money.
Just recently, international money transfer (IMT) specialist, WorldFirst launched its World Account - a new tool to help small business owners and sellers manage transactions, while peer-to-peer money transfer platform, TransferWise are also hoping to soon launch their TransferWise for business service in Australia.
According to Wiley, although there are “many adaptations” of an IMT multi currency account, opting for a service by a specialist is set to save you big bucks no matter what.
“A typical multi currency bank account requires you to have a minimum balance in there, we don’t. We don’t have receiving fees into the account for local domestic payments, whereas any foreign currency account with a bank will, usually USD $5 up to $25, so those are the big savings up front,” he explained.
If you’d like to compare other IMT options and their products, you can head over to our IMT comparison tool to check out some of today’s rates.