As an SME, it’s likely that you’ll need to make an international business transaction at some point.
According to a report by Money Mover, UK small businesses have a great appetite for expanding globally, expecting to grow international revenues from 40% to 66% over the next three years.
However, small businesses often find themselves being charged excessive amounts for these payments, without realising it. This being said, it’s certainly advisable to shop around for the best rates, commissions and costs.
How do they work?
Making an international money transfer involves sending an individual or organisation in a different country money in another currency. The amount of money received depends on the exchange rate at the time, and this varies between providers. In other words, the sender can be charged a fee on top of the original amount they wish to send, or in some cases, the recipient may receives a lower amount.
What are your options?
When considering how you’ll send your money abroad, it’s worth asking yourself the following questions:
- How much is my business sending?
- How much is it going to cost?
- How often will my business be making these transactions?
- How does the person or company I’m sending it to want to receive it?
- How quickly do I need the money to get there?
Not all payment methods will suit your business’s needs and each has its pros and cons. Rates can fluctuate so you might find that a different option suits you depending on when you’re making the transaction and with how much money. If you don’t look at the charges imposed on your transfer closely, you could easily be one of many small businesses losing out to eye-watering imposed costs.
To lend a hand, Sainsbury’s Bank has published a helpful visual guide.
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