There is no escaping that dealing with finances is a large part of doing business. Whether it is processing payments from customers or sending money to manufacturers, transferring money is a huge responsibility.
Expanding your business internationally means you will often have to transfer money overseas. This can be a complex and nuanced process. Here is a guide to help make financial transactions between countries smooth and simple.
Understanding your options
When it comes to transferring money abroad you need to consider your options. Different methods will work better for different businesses.
Traditional banks are the first choice for many companies. One of the biggest benefits of using a bank is that the service is available whenever you need it. You can use your online banking system to complete these transfers which is relatively easy. Banks often charge for international transfers as they have to convert the currency to the receiver. You may also need to have different bank accounts for different currencies which can be an administrative nightmare.
Some companies offer competitive rates combined with a user-friendly platform that can handle all of your money transfers for your business.
Optimising efficiency
Foreign exchange rates are an important factor when you are sending money to other countries. The exchange rate between two countries is affected by demand and supply. For example, the pound gets stronger when people want to buy more pounds, meaning you get more foreign currency when you exchange. The same is true for the reverse, a weaker pound means a less favourable exchange rate.
Being able to get favourable rates, either through careful research or employing a company means your business will get more for its money. This can go a long way to maximising your profits.
There are different transactions associated with international business. Some businesses will prefer same-day transactions whereas others will prefer next-day. As long as you know when your money will be moved, you can adjust your business plans accordingly.
Ensuring security
However you choose to send your hard-earned funds, you need to feel confident that the transaction is secure. Check that the service you use is accredited by the regulatory body in your country. This information should be displayed prominently on their website or promotional materials.
There are ways you can protect your money as well. Most transfer services, whether it is international or domestic, have verification processes designed to keep you safe. Take a few extra minutes to check the details you have entered are correct. This is especially helpful if you are setting up a new payee.
Many online banking services also have fraud warnings that pop up when you use apps. Although you may have seen them a hundred times before, they serve as an important reminder to prevent fraud. Make sure that you are confident that the person you are sending money to is a legitimate business contact.
