Using an international money transfer service instead of your bank when paying international employees or invoices can save you both time and money. We break down the best ways to make an international business transfer so you can get back to work quicker.
Get bank-beating exchange rates and no fees when you transfer with TorFX.
Take a look at the ways you can make and request payments across borders to figure out which is best for your business. Many options are at your disposal, each with their own benefits.
Money transfer providers are specialists that can get your funds from A to B at a low cost. And they’ll likely hit your account – or the account of your supplier, contractor or employee – sooner than other options.
Many specialists also offer forward contracts, limit orders and recurring transfers to save you time and money.
For a service that goes beyond directly sending and receiving payments, a business payment account with a money transfer provider may better suit your business’s needs.
One such provider is Wise. Its Borderless program allows you to set up local bank accounts in up to 15 countries so you can pay and get paid as though you were local.
Cost-effective international transfer services for online sellers
A bank-to-bank wire transfer may be the most familiar and well-trodden path, but it may not be what’s best for your business. International wire transfers often come with steep transfer fees and poor exchange rates. Some banks charge up to £25, for example, while some money transfer services don’t charge a fee at all.
Learn what wire transfer fees major banks charge – and how to beat them
When you’re looking to pay your employees, you can potentially get everything handled by an international payroll service. It processes the entirety of your payroll and stays up to date on regulation changes so you don’t have to.
Failing all other methods, you can mail a cheque. Doing so comes with quite a few drawbacks, including comparatively lacklustre security and slow delivery times. You might also run into low maximum amounts for international money orders.
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.
Let’s say you need to send £10,000 to a supplier in India. Here’s what you might face as far as fees and exchange rates as of 8 August 2020.
| Money transfer service | Major UK bank transfer | |
|---|---|---|
| Fee | £0 | £20 + additional correspondent bank fees |
| Exchange rate | 1 GBP = 97.08 INR | 1 GBP = 95.77 INR |
| Transfer speed | Same day | 4 days |
| Amount received | INR 97,079 | INR 93,852 |
| Verdict |
|
|
The bank option is both slower and more expensive when paying your supplier in India. If you went with the money transfer service, not only would your recipient get the money faster, they’d also get an extra INR 3,227 thanks to stronger exchange rates and lower fees.
Banks may seem like the more convenient option, but once you set up an account with a money transfer company you can send money with a few clicks.
How you set up to receive funds is going to depend on what type of service you go with. Banks are likely to give you the option to open the account and get started in person, while a dedicated money transfer service will probably have fewer physical locations. You’ll probably also have the options of opening an account over the phone or online.
The process is a bit more involved for business accounts, so set aside at least half an hour in most cases to get through the entire application. Make sure you have your personal details, business information and any relevant financial information you may need.
Income from abroad is still taxable in the UK. Also be aware of any international tax laws that might apply, especially if you have an international bank account. While there are many treaties around the world to avoid double taxation, you may still be subject to additional taxes.
Because tax law is so involved, you’ll likely want to seek out a certified advisor to make sure everything is above board. Some international business payment solutions like FlyWire can also help you manage your business taxes.
While there’s no one perfect product for making an international business transfer, knowing how to evaluate solutions and find the best one for your business goes a long way. Compare international money transfer providers to get more details on the services they provide, how to better measure them against one another and what to do once you choose one.
Nearly all money transfer services provide a unique transaction ID that you can use to check the status of your funds. In most cases, you can do this online or by phone.
When processed through a reputable bank or money transfer provider, your funds are safely tracked until in the hands of your recipient.
Yes, many banks and transfer companies offer the convenience of recurring transfers.
Want to avoid fees or integrate with your bookkeeping software? Here’s our pick of the top business current accounts.
Want to avoid fees or integrate with your bookkeeping software? Here’s our pick of the top business current accounts.
Want to avoid fees or integrate with your bookkeeping software? Here’s our pick of the top business current accounts.
Use our helpful guide to find the right breakdown cover for you.
We’ve taken a look at some of the best trading apps in the UK and explained who they’re best suited to. Our table compares fees and services too.
Which countries does Western Union let you send money to? See the list of 200+ countries with Western Union money transfers.
Learn about government support and alternative options for businesses needing finance to help deal with the impact of coronavirus.
Learn how to compare international money transfer services so you can get the best exchange rates and lowest fees.
Earn Avios or cashback on all your business spending with this business Visa from challenger Capital on Tap.
Learn more about how prepaid business cards can be used to spend money with any retailer that accepts debit or credit cards.
Can I not confirm today the money entered in my account, because I really need today’s money, sir?
Hi Kadek,
Thanks for getting in touch with finder. I hope all is well with you. :)
May I know which provider you are with? What you can do is go to their website. Most providers allow you to create an account with them. You can then sign in to your account and then check the status of your transaction.
Of course, you can also visit your provider’s contact us page. From there, you can ask them directly regarding your transaction status.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
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.