Find a convenient and cost-effective way to manage your business’ international payment needs.
Running a successful business in the modern world requires you to look for innovative and cost-effective solutions in all aspects of your enterprise, including the way you send and receive money from overseas.
From expanding into foreign markets to sourcing unique products from overseas suppliers, there are many reasons why a business might need to send money internationally. There are also plenty of different transfer providers and banks who can help you send money overseas, but it’s important that you compare all your options so that you find the best value for money on offer.
Compare International Money Transfers
Why compare business transfer providers?
While many people simply opt to send international money transfers via the bank that handles all their other business transactions, they’re often unaware that they’re not getting a very good deal. Banks offer some of the worst exchange rates on the international money transfer market, plus they regularly charge high fees – the end result being a significant hit to your bank balance.
But the disappointing money transfer services offered by the banks has led to the emergence in recent years of several reputable online money transfer companies. These providers offer online transfers from your UK bank account to accounts all over the world, but because they specialise in international transactions and can purchase foreign currency at wholesale rates, the exchange rates they offer are much better. And when you’re sending thousands of pounds overseas at a time, even a couple of cents’ difference in the exchange rate works out to be a whole lot of money that could still be in your business account.
These online transfer companies also offer lower fees than the banks in many cases, as well as options such as limit orders and forward contracts to allow you to target the exchange rate you want. Even setting up a payment plan for your regular transactions is an option.
Brian runs a small business importing French kitchen accessories into Britain. For the past 10 years he’s been making intermittent payments to his supplier in Paris through a major UK bank, but Brian has fallen on tough financial times and is looking to cut costs wherever possible. Instead of paying the £20 transfer fee and accepting the dismal exchange rate on offer from his bank, Brian decides to compare two online money transfer companies to see which one offers the best value for money on a £1,000 transfer.
| Money transfer company 1 | Money transfer company 2 | |
|---|---|---|
| Exchange rate | 1 GBP = 1.3355 EUR | 1 GBP = 1.3180 |
| Transfer fee | £2.50 | £5 |
| Transfer method | Online account transfer | Online account transfer |
| Processing time | 1 day | 1 day |
| Amount received (in EUR) | 1,335.50 | 1,310.80 |
As you can see, if he uses the first transfer company Brian can save £2.50 in transfer fees and also send an extra €25 or so to his supplier by paying the same amount of Pounds Sterling.
Which companies send international business transfers?
Any major financial institution in the UK can send an international money transfer, including HSBC, Lloyd’s, Santander and Barclays. However, when you consider the cost of sending funds via your bank you may need to send an international transfer using an online money transfer provider. Some of the companies that offer this service include FC Exchange, Currency Fair, Azimo, MoneyCorp and OzForex. Start comparing their services today to see which one offers the best deal for your business transfers.
Back to topHow do I compare international money transfer services?
To save time when comparing transfer providers, keep the following features in mind:
- Exchange rates. Try to find a company that regularly offers some of the best exchange rates around; however, be warned that some companies that offer great rates may also charge higher fees than the competition.
- Fees. Consider how much you’ll need to pay each time you send money overseas? Will you be able to avoid the company’s fee by transferring a larger amount? Will you need to pay an extra commission if you place a special transfer request such as a limit order?
- Transfer methods. Some companies offer online transfers only, while others will also offer transfers over the phone, in person at a branch, or even by using a free mobile app.
- Forward contracts. Check to see if the company offers this option, which allows you to lock in an exchange rate today for a transaction that will be sent up to two or three years into the future.
- Limit orders. Does the company offer limit orders, which allow you to specify your target exchange rate? Such transfers will then be automatically executed when the exchange rate you want becomes available.
- Regular payments. From rent and mortgage payment to salaries and supplier invoices, there are plenty of reasons why you might need to set up a regular payment plan – check to see whether this is an option with each company.
- Transfer processing times. How long will it take for the funds you send to arrive to their destination?
- Currencies available. Does the company offer support for the currency or currencies you wish to send, or will you have to send Pounds, US Dollars or another major currency which your recipient will then have to convert?
- Receiving options. Most providers offer transfers directly to the bank account you nominate overseas, but some also offer mobile wallet deposits or transfers that can be made available for cash pickup from a transfer provider branch.
- Customer support. Fast and convenient access to customer support is essential if something ever goes wrong with a transaction, so check to see if phone, email and live chat support are offered and during what hours you can access them.
- Reputation and reviews. It pays to research a company’s standing within the money transfer community and read any reviews from previous customers. Making sure the company is properly registered and regulated is also a good idea.
Frequently asked questions
Can I set up a regular payment in advance?
Yes, many providers will offer this service to allow you to save time. For example, FC Exchange allows regular payments.
Can I send a cash transfer?
Yes, you can send an urgent cash transfer if needed. Companies such as Western Union and MoneyGram offer this transfer option.
Does it cost anything to sign up for an account?
No, in most cases you will not have to pay anything to register for an account with an online transfer provider. However, you will usually need to sign up for an account before you can send money anywhere.
Can I cancel a transfer after I have placed it?
This varies depending on the transfer company. Some allow you to cancel or amend a transfer request within a certain timeframe, while others do not allow any alterations.
i have agreed a deal between two businesses for one of them to purchase goods from an EEC supplier to a buyer in China. The good will be paid for on an irrevocable LC when the good arrive in China.
I will be paid my commission as soon as the LC payment hits the suppliers account.
How can i protect my payments to make sure they happen as soon as the LC Payment clears in the suppliers account?
You could try Halo Financial.
They do international money transfers for businesses as well as individuals. If you create a Halo Financial account, you’ll be assigned an expert foreign exchange consultant free of charge. Since you have quite a particular need, it may be the best option, as they will be able to find a solution tailored for your requirements.