For an increasing number of businesses, the days of dealing only within the domestic market are long gone. From suppliers and customers to sourcing and selling products, a modern business must regularly send and receive funds from overseas. But if you aren’t sure how to get the best value for your money, sending funds overseas can become a significant business expense. Read on to learn about the most cost effective ways to send international business transfers.
Use the table below to sort through different money transfer services until you find one suitable for your business. Enter the amount you need to send and the destination to see the most suitable services. If you want to read more about a product, click “More”, or click “Go to Site” to register for a service and get a free quote.
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Why you should consider using an international money transfer provider instead of your bank
For business owners, time can sometimes be more valuable than money. You may think that because it handles your other finances, your local bank is the simplest option when sending money overseas. In truth, international money transfers are no longer a game for only tried-and-true players like banks. Newer companies promise to undercut the competition to earn your business.
Because banks offer a diverse range of financial products and services, their exchange rates can be among the weakest around. Poor exchange rates and high fees can take up a sizable chunk of the amount you’re sending. Also, they might not offer the currency or destination you need.
Online money transfer services, however, specialize in one thing: sending money overseas. Their work with large volumes of currency means they can beat the banks with competitive exchange rates and minimal to no fees — all good news for your bottom line. Fees can add up quickly, especially when you’re setting up regular scheduled business transfers, so it pays to compare the hidden charges included with competing providers.
Money transfer companies can also typically transfer your funds quicker than banks can, which is an important feature in the business world. Some companies offer transfers within 24 hours or even minutes, while banks can take up to five days to send your money.
Let’s look at an example below.
Should I use a specialist money transfer service or my bank?
Kevin is a small business owner who wants to send a one-off payment of RM10,000 overseas to an important supplier in the United States. Although tempted to simply use his regular bank to perform the transaction, he decides to compare how much it will cost through his bank with the expense involved in transferring funds via a money transfer provider.
Bank
Money transfer service
Exchange rate
0.23
0.24
Fee
RM30
RM10
Amount transferred
US$2,300
US$2,400
Amount saved using a money transfer service
+US$100
As you can see, with a competitive exchange rate, Kevin can send an additional US$100 to his recipient by using a dedicated money transfer provider. He also saves RM20 on transfer fees.
*Rates quoted are correct as of October 2018 and indicative only. You should always source a quote for current rates and fees.
Which services specialise in overseas money transfers for business?
There’s no shortage of providers that allow you to manage your overseas business transactions with international transfers. Major Malaysian banks such as Maybank, Public Bank and Hong Leong Finance Bank offer this service. However, business owners can also conduct international money transfers through specialist companies such as OFX, WorldFirst and others. In many cases, you can save money by using the services of a money transfer provider instead of a regular bank.
These companies usually offer better exchange rates and lower fees than banks. They also often offer a much faster processing time for transfers. In short, while banks focus on a wide range of financial products and services, international money transfer providers specialise in sending funds overseas.
Compare these features when comparing business transfer services
The higher the exchange rate, the more money will end up in your recipient’s bank account. It’s quick and easy to compare exchange rates online, and money transfer companies typically offer better rates than banks. Some companies will also offer better rates to business customers than personal customers, so compare this feature as well. However, remember to consider a company’s rates in conjunction with its fees.
Little or no fees
Read the fine print to discover any fees and charges which will be attached to your transaction as well as whether you can save money by lodging your transfer online instead of in a branch. Many online transfer providers will waive their transfer fee when you send more than a certain amount, so look into this feature as well.
Ability to schedule payments
Does your provider allow you to set up regular scheduled payments? This is convenient for business owners and can help you organise your budget more effectively.
Forward contracts
A forward contract lets you lock in an exchange rate now for an international money transfer that will take place at a later date. Consider which providers offer this, how far in advance contracts can be set up and whether the providers attach extra fees for this service.
Customer service, contact methods and availability
Consider which provider has the best reputation for customer service. Is assistance available online, over the phone and via live chat? Between what hours can you contact customer support? This area is important to consider in case you ever have issues with one of your transfers that need to be resolved.
Supported currencies
Different money transfer providers will offer to transfer funds to a range of different supported currencies. Most providers will let you send funds in a number of commonly traded currencies, for example the US dollar or the British pound, but depending on your business, you may need to trade more exotic currencies.
Limit orders
Limit orders let you take advantage of fluctuating market exchange rates, so check which providers offer this feature. Also remember to establish whether this service comes with any fees. A limit order allows you to specify a target exchange rate for your international money transfer, and your money transfer provider will then monitor the market and perform your transfer when such a rate arises. This allows small business owners to take advantage of fluctuating exchange rates when sending money overseas.
Another way your business can save money: Using limit orders
Kevin wants to send RM15,000 to the United States and is offered an exchange rate of US$0.23. He believes he will be able to find a better deal. He lodges a limit order with his money transfer company not to transfer the funds until an exchange rate of US$0.24 is available. When the market hits this rate four days later, his funds are sent. This allows Kevin to save a further US$150.
Normal transaction
Limit order
Exchange rate
0.23
0.24
Fee
US$0
US$0
Amount transferred
US$3,450
US$3,600
Amount saved using a limit order
+US$150
*This is a fictional case study. Always source a quote for current rates and fees.
Frequently asked questions
If you wish to send money internationally on behalf of your business, you will need to register your business details for the account. This includes the business name and registered address, business registration number, details of the company directors, owners and/or shareholders and a description of what the business does. You will also need to register a bank account that is in the same name as the business.
Yes, international money transfers are safe. Bank Negara Malaysia (BNM) regulates money transfer providers in Malaysia in the same way it does traditional banks. The money transfer providers operate under a financial license, which you should be able to check via the provider’s website.
It is typically cheaper to send funds through a money transfer provider due to better exchange rates and lower fees.
Yes, your provider or bank will give you a tracking number so you can monitor the progress of your transaction.
This varies between providers. Certain currencies are staples on the international currency market, such as the US dollar or the euro, while other currencies are rarer. Contact your provider for a full list of the available currencies.
If you need to conduct an international business transfer, it really does make good financial sense to shop around and compare your transfer options. This will ensure you save money and that your transfers are processed fast. You can start the comparison process at finder Malaysia
Zyane is an associate editor for Singapore at Finder. An experienced copywriter and content creator, Zyane enjoys writing on a wide array of subjects. When she’s not busy typing away, she’s reading and musing over a pint.
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