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Using an international business 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.
Use our comparison calculator to assess transfer fees, exchange rates, transfer speeds and more for your business transfer.
There might be a number of reasons why your business needs to transfer money overseas. Here are the most common:
Take a look at the ways you can make and request payments across borders to figure out which is best for your business. Depending on the reason for your business money transfer, you may have many options at your disposal, some better suited than others.
Business 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 such as banks.
Many specialist money transfer 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 business 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.
A bank-to-bank wire transfer may be the most familiar and well-tread 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. Typically, banks like Wells Fargo and Chase can charge upwards of $50 for an outgoing wire transfer.
Send wire transfers through money transfer companies to save money
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.
Read our international payroll guide to compare your options
Failing all other methods, you can mail a check. Doing so comes with quite a few drawbacks, including comparatively lackluster security and slow delivery times.
You may also run into low maximum amounts for international money orders if you decide to use USPS.
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 and most obvious option when sending money overseas. In truth, international business money transfers are no longer a game for only tried-and-true players such as banks. Newer companies and online money transfer providers can undercut the competition to earn your business and will normally deliver your money to recipients faster than the banks can.
Take a closer look into the following areas to find the most suitable business money transfer service:
Sending a $10,000 business transfer to France
Let’s say you need to send $10,000 to a supplier in France. Here’s what you might face as far as fees and exchange rates as of July 23, 2020.
| Money transfer service | Major US bank transfer | |
|---|---|---|
| Fee | $0 | $25 + additional correspondent bank fees |
| Exchange rate | 1 USD = 0.859 EUR | 1 USD = 0.821 EUR |
| Transfer speed | Same day | 2-5 days |
| Amount received | EUR€8,593 | EUR€8,189 |
| Verdict |
|
|
The bank option is both slower and more expensive when paying your supplier in France. If you went with the money transfer service, not only would your recipient get the money faster, you’d also save more than €400 thanks to stronger exchange rates and lower fees.
Banks may seem like the more convenient option, but once you get an account setup with a money transfer company you can send money with a few clicks.
Your option for receiving 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 business money transfer service will probably have fewer physical locations. You’ll probably also have 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 US. On top of the US IRS, 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.
When making a transfer, you may be quoted a fee on top of the amount you want to send. But if you look closer or ask for a breakdown of this fee, it could relate to a number of hidden fees relating to the following:
While there’s no one perfect product for making international business payments, 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.
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 company, your funds are safely tracked until in the hands of your recipient. And if you’re sending money internationally, federal protections are in place that require banks, credit unions and money transfer companies to, for example, disclose all fees up front and give you 30 minutes to cancel a transfer, assuming it hasn’t yet been picked up or deposited.
Yes, many banks and transfer companies offer the convenience of recurring transfers.
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