- Competitive exchange rates
- Flexible transfer options
- Transfer to 50+ currencies
The world is more connected than ever before thanks to modern technology and the Internet. Businesses send money overseas for many different reasons, from paying international suppliers to buying stock or consolidating their financial strength in overseas markets. Since businesses can choose from any number of international money transfer providers, it pays to compare your options to find the best deal.
In an effort to save time, many business owners choose to send money transfers through their regular banks. Unfortunately this is one of the least efficient and most expensive ways to send money overseas. Banks offer sub-par exchange rates and charge high fees, in addition to offering limited currencies.
Money transfer services, on the other hand, generally offer more competitive exchange rates and much lower fees, in addition to a faster delivery of funds to their destination. In addition, many money transfer companies will waive their transfer fee when you send more than a certain amount of money (around $10,000), so keep an eye out for this feature if you want to maximize your savings.
Kevin is a small business owner looking to send a one-off payment of $15,000 from Canada to an important supplier in the United States. Although tempted to use his regular bank to perform the transaction, he decides to compare sending the money through his bank or via a money transfer provider.
|Bank||Money Transfer Service|
CAD$1 = USD$0.74
Amount received (for $15,000)
2 – 5 days
1 – 2 days
or cash pick-up
Kevin realizes that he can save USD $150 (around $196) in the exchange rate with the money transfer option, with an additional $15 in fees.
Kevin decides that he wants to save even more on his transfer, so he books a limit order with the money transfer company which allows him to choose an exchange rate in advance. The money transfer service then monitors the market and when his selected exchange rate is reached, his transaction is processed. Kevin decides he wants his order to process when the exchange rate reaches CAD$1 = USD$0.75. This exchange rate is reached six days later, and Kevin’s transaction goes through, saving him an additional USD$150 (or CAD $196).
It’s possible for businesses to send money overseas through many Canadian banks, including TD, Bank of Montreal, Royal Bank of Canada, CIBC and Scotiabank. However, business owners can also conduct international money transfers through specialist companies like OFX, TorFX, CurrencyFair, TransferWise and others.
In many cases, you can save money by using the services of a money transfer provider instead of a regular bank. Money transfer providers usually offer better exchange rates, lower fees and faster processing time for transfers. While banks offer a wide range of financial products and services, international money transfer providers specialize in sending funds overseas.
Compare the following features when choosing a money transfer provider to conduct your business transfers:
The basic steps you’ll need to follow when sending money with your business account are outlined below:
This varies between providers. Certain currencies are staples on the international currency market, such as the United States Dollar or the Euro, while other
currencies are rarer. Contact your provider for a full list of the available currencies.
If you’re looking to send an international business transfer, it’s worthwhile to shop around and compare your money transfer options. Keep an eye out for special features like limit orders and forward contracts and ask for quotes from 3 – 4 providers before you book your transaction. Compare reputable business services today with Finder Canada.
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