In this increasingly interconnected world of global trade, many UK businesses have markets and supply chains stretching across the globe. It is a world in which you are likely to need to make regular payments abroad – and receive payments from overseas, too.
Finding the best ways to make such transfers – especially if you are likely to be making them on a regular basis – becomes critical to your enterprise. Depending on the method you choose, you might be hit by high charges, commissions and unfavourable exchange rates. So, what are some of the best ways to make those money transfers and how might you choose the method that suits your particular business?
Business money transfer specialists
The Money Advice Service suggests that there are three main ways of transferring money abroad:
- through a bank or building society – probably the most convenient and secure method;
- foreign exchange brokers – so-called “forex” brokers may be the most suitable if you are transferring a large sum; or
- money transfer companies – for their speed, principally, despite their often high cost.
While these remain your principal options, it is worth noting that an increasing number of internet “challenger” banks are these days incorporating easier, faster and cheaper ways of sending business money overseas.
Factors to consider
When choosing your bank, foreign exchange broker or money transfer specialist, you might want to consider the following factors – which, over time, and depending on the volume of your international trading may make significant financial savings:
- the exchange rate – it is sometimes difficult to know in advance just what exchange rate is being used for your transfer, especially when using a high street bank. A specialist fintech business bank is likely to offer more favourable rates;
- fees, charges and commission – these vary, often quite widely, between different means of transfer and may add a considerable sum to even the smallest of transactions;
- speed – once again, it is the internet-based fintech banks that are likely to be the fastest in processing and completing your transfer of funds;
- how much you are transferring – the relative cost of business money transfers is likely to be lower the larger the sums you transfer. The larger the amount, of course, the more critical the exchange rate. Fixed costs on small transfers may be disproportionately high;
- where your money is going – remember that not all banks and money transfer companies deal with every country in the world, so you may need to choose based on the destination of your transfers;
- payment options – if you want to be able to make business money transfers easily and speedily, you might also want the option of being able to pay for the service online, through your smartphone’s banking app;
- support – does the bank or money transfer company you have chosen offer round the clock support and customer service.
Business money transfers may be an integral part of your growing enterprise. If that is the case, you may want to compare the various services available and find the one that most closely meets the particular needs and requirements of your business.