As you grow your business, increased trading may be built on an expansion of your overseas customers. To take advantage of competitive pricing, you might also want to buy in more of the supplies, materials and equipment you need from abroad.
As your trading across international borders gathers pace, it becomes increasingly important to use business money transfers that are fast, efficient and cost-effective.
Finding the service that most suits your business – now and in the future – involves a careful comparison of your business money transfers services. Since your options are many and varied these days, you might want to consult a purpose-designed comparison website.
What are some of the considerations to be kept in mind when comparing business money transfer services? The Money Advice Service has a few suggestions about using comparison websites more effectively.
Bank or money transfer company
- you pay for the facility to send or receive international payments. The cost broadly comprises two elements: the fees and commissions you pay to the service provider and the exchange rate you are offered for the conversion of sterling into a foreign currency or currencies – and vice versa;
- on both scores – the fees paid, and the exchange rate offered – you are almost certain to pay more if you are using a regular high street bank to make the transfer;
- the rise of fintech start-ups, specifically dedicated to facilitating business money transfers, has significantly reduced both the fees you need to pay and introduced more competitive rates of exchange;
Simplicity and speed
- one of the hidden costs of business money transfers overseas is the time and effort of the staff you employ in processing international business payments;
- when comparing business money transfer services, therefore, you might want to keep the simplicity with which transactions are processed firmly in mind – valuable time is saved by the staff charged with the task of arranging and monitoring such transactions;
- closely related to the need for simplicity is the speed with which such transfers are completed – whereas the high street bank might require several days to process your instructions, a dedicated money transfer company may complete the transaction the same day;
The services offered
- depending on the volume and sophistication of your overseas trading, you might want more than a simple series of money transfers;
- to counter the inherent risks in currency exchange, for example, you may want to set stop losses or arrange payments for spot or forward contracts;
- not all the services you may require are necessarily offered by all business money transfer providers, so your research and comparisons need to take this into consideration;
The currencies you need
- by a similar token, not all business money transfer service providers offer transfers in all currencies;
- that means selecting a provider capable of handling and processing the currencies in which you are trading;
- some providers can also set up holding accounts in which your business may hold a range of different currencies;
- your need for such a facility, of course, depends on the nature of your business but is likely to prove useful if you are trading across several international borders.
As your business grows and you become ever more involved in the international interconnected economy, the ability to make business money transfers overseas assumes a greater priority. It is important to compare the many options currently available for arranging such transfers so you get the most cost-effective solution for your business.