With a global world nowadays, having an overseas team is necessary to become globally competitive. When you’re running an overseas team, transactions will happen across the border. You’ll be trading with different countries for exporting and importing goods and services. International money transfer will play an essential role in this area.
Money Transfer
To help you understand more about money transfer, here are some key things you need to know.
1. Exchange rates
The exchange rates determine the value of each currency. This will also dictate how much your money is worth in another country’s currency. It’s vital to get the best rates when you’re transferring large amounts of money. For corporations or businesses, every cent matters since international money transfers are usually in bulk.
If you’re looking for rates, you can check out thecurrencyshop.com.au for comparative and real-time rates.
2. International transfer fees
When transferring money overseas, there are usually some fees tucked in. These fees can quickly add up before you even notice it and take out a chunk of value from your transfer. Often, there will be an exchange fee that you need to pay banks or any institution that will make the transfer. Be aware of these fees as this will make or break your wallet.
3. Transfer speed
The transfer speed of different providers will vary. If you need payments to be credited to your suppliers immediately, you might want to verify this with the bank. Usually, an international money transfer will take 1 to 5 days to complete the transfer. This is because the provider will need to do some due diligence by verifying your identity and doing some credit checking. It’s also best to note that the rate of the transfer speed also determines the transfer fee; the higher the speed, the more expensive the fee is.
Depending on the provider, you can have money transferred within a day or within five days. Do your research, and find the perfect international money transfer provider for you. If you’re looking for a provider to transfer money for you, you can check out The Currency Shop.
4. Transfer limit
Similar to local money transfers, there’s also a minimum and maximum amount that you can transfer in a single transaction during a certain period in time. There will also be some monthly or daily limits depending on the channel of transfer that you choose. Days before the transaction, it’s best to check with your provider regarding how much the transfer limits are.
5. Spot deal
Did you know that you can actually lock in the rate that you want? This is possible with international money transfers. Spot deals happen when you arrange a transfer and lock in the rate on the spot.
Since exchange rates change every minute, it’s also good to get a lock in a rate to minimize foreign exchange risk. However, part of this transaction’s arrangement is a same-day done deal. You cannot settle it the next day.
6. Forward contracts
Forward contracts are useful because it allows you to lock in a reasonable exchange rate for a transfer that will happen in the future. By doing this, you get to hedge on exchange rates and not miss out on a reasonable rate. Forward contracts usually range from 3 months to a year. Initial deposits are typically paid up front and balance after the final transfer.
7. Limit order
Through limit orders, you don’t need to constantly monitor the fluctuation of the exchange rates. You can actually nominate the exchange rate that you want before it happens. So that when the currency meets that certain exchange rate, the transfer will be triggered automatically by the system.
International Money Transfer
Now that you know the key foundations of international money transfer, you can now better appreciate its advantages. If you’re running an overseas team, the chances are that you’ll also have transactions overseas. While transferring money from bank to bank is possible, there are conveniences and key benefits from using international money transfer.
Here are some advantages in using international money transfer, most importantly, if you’re running an overseas team.
1. Better exchange rates
Money transfers are more cost-effective with international money transfer providers such as The Currency Shop. Even though you’re only transferring money from one account to another, having an international money transfer provider will help you get the best exchange rates. By doing this, you’ll get the best value for your money even when you transfer it overseas.
2. Better business opportunities
Having international money transfer in your overseas team will open up many business opportunities for you. Doors will be open for exporting or importing goods. Moreover, you can also hire people in different countries to outsource some of your business needs. This will give you flexibility and allow you to focus on your company.
International money transfer will allow you to buy equipment, ingredients, supplies from another country at ease. Especially with an overseas team, the purchase of exported goods are inevitable. This is where international money transfers come into play and will keep you globally competitive.
3. More flexible features
International money transfer will provide many options that you won’t have access to if you use regular international payment methods such as PayPal or credit cards. If you do an international money transfer, you will be able to make use of forward contracts, spot deals, and limit orders.
By now, you already know that forward contracts and spot deals are hedging tools you can take advantage of to retain the value of your currency. These are available for your use once you decide to take on international money transfers. Moreover, if you don’t have time to monitor the rates, you can also use the limit orders function to program a rate and have the system transact for you.
4. Higher transfer limits
With international money transfer specialists, you’re given a higher limit on transferring money overseas. This will prove to be very useful for you, especially if your business disburses large amounts of money. The more leeway you have on the transfer limit, the better it is.
Higher transfer limits will also allow you to do more business using your overseas team. With a higher limit, the limit of your reach is also extended as a business with an overseas team. You won’t be confined to a specific limit if you use international money transfer providers.
5. Better customer service
With an overseas team, your reach widens and so does the kind of customers. With an overseas team or office, you have to make sure that you can provide complete financial services for your team and customers. This is where international money transfers come in.
Do not let customers wait for weeks to get their money. Since online transfers are available, your receiver can get the money anytime depending on how fast the international money transfer provider is. You’ll be able to foster stickier relationships with your customers by having this service and create loyal customers as well.
6. Easy access and global service
The receiver of the money does not need to travel far to receive the transfer. If the money transfer is done online, then the receiver will only need a stable source of internet. On the other hand, if it is not online, international money transfer services usually have many satellite outlets where you can go to collect the money.
These international money transfer providers are also usually linked with various banks. Just do your research, and you’ll be surprised by the ways on how your receiver can collect money. It will be so convenient for both you as a receiver or as a sender to transact money internationally.
With international money transfer, you also only need a stable internet connection to transfer funds. You don’t need to be in a specific location or send messengers to do errands. No need to drop everything you’re doing just to go to a bank’s branch. Simply move money on your computer or your phone.
7. Safe and secure transfers
Transferring money overseas sometimes makes you vulnerable to hackers and scammers. However, having an international money transfer provider to back you up, there will be a safety net that will protect you from these risks.
Generally, it’s very safe and secure to do international money transfers. There are many regulations on international money transfers put in place to make sure of the safety and security of both the sender and receiver. Thus, there are safety measures and procedures put up and being practiced to make sure that money transfers are safely transmitted to its beneficiaries. Because of this, you’ll be able to enjoy peace of mind, especially if you know that the international money transfer provider is reliable.
8. Online remittance services
This is most beneficial for your customers. With an international money transfer provider, your receiver can immediately convert the currency back to his currency without your intervention. The conversion happens online, and neither you or the receiver will need to go to another bank or money exchange provider to have the money converted to another currency. You can do it already with a few clicks.
You can also have the option to maintain balance in a different currency and convert it whenever you prefer to. With this conversion, the receiver also shoulders the fees. Many international money transfer providers already feature this service for their customers.
9. Keep track of money remitted
With an international money transfer provider, you can calculate and keep track of all money transferred using an online account. When money is transferred, it will automatically be recorded in a ledger. There’s no need to record every single transaction manually. The amount, date, and recipient will all be recorded for future reference. This will prove to be very useful when you need reports on transactions from your overseas team.
10. Pay a flat fee
As mentioned above, when sending money overseas, there is often an exchange fee on top of a service fee if you do these transfers with banks. For these charges, banks usually charge a small percentage of the total amount to be transferred. These low fees might look insignificant at the start, but if it starts piling up, you’ll see the impact of these fees.
To avoid this, international money transfer providers eliminate this by having a flat fee. When you are only charged a flat fee, it won’t matter how much money you are transferring – the fee remains the same. Unlike banks, international money transfer does not charge on the percentage of the amount transferred. Having an international money transfer provider will provide some cost-savings solutions for you.
11. 24/7 assistance
By using an international money transfer provider, you are given access to 24/7 assistance from the provider. If anything arises, you can just contact their customer service to resolve the problem. May it be an incorrect transfer or funds or a glitch in the system. Their support team will be there to help you solve the problem and give you solutions so that your transaction pushes through. This is also a safety net that the international money transfer provider offers you as their client.
Conclusion
Sending money internationally is now simplified for businesses and corporations. Especially with an International Money Transfer provider, you can get many benefits that help you secure the value and minimize the risks of transferring money overseas.
Moreover, international money transfer also makes your business more globally competitive. Just always do your research, and you can find the best international money transfer provider that will suit your needs.
