Send money abroad

Send money abroad: expert tips and methods for businesses

In today’s globalised economy, businesses of all sizes often need to send money abroad. Whether paying international suppliers, managing overseas employees, or expanding into new markets, efficiently transferring funds across borders is crucial. However, managing the complexities of international money transfers can be challenging, with high fees, fluctuating exchange rates, and varying regulatory requirements. 

In this blog post, we will discuss effortless solutions for businesses to send money abroad, covering different methods, tips for efficiency, and future trends in international money transfers.

Why do businesses need to send money abroad?

In today’s global economy, businesses must execute foreign payments for various reasons.

Globalisation and international trade

Globalisation has made international trade more accessible and essential in modern business. Companies are no longer confined to their domestic markets; they can source products, services, and raw materials worldwide. This global reach allows businesses to find better prices, higher-quality products, and more diverse options, making it necessary to transfer funds internationally to facilitate these transactions.

Managing international suppliers and clients

Maintaining relationships with international suppliers and clients is critical for many businesses. Timely payments are crucial to ensure the smooth flow of goods and services. By efficiently making international payments, companies can strengthen their relationships with overseas partners, avoid disruptions in the supply chain, and ensure client satisfaction.

Expanding market reach

Expanding into international markets offers significant growth opportunities for businesses. To enter and operate in foreign markets, companies must transfer funds for marketing, operational setup, and local partnerships. Effective international money transfers enable firms to invest in new regions, tap into diverse customer bases, and achieve sustainable growth.

Methods to send money abroad

Transferring money abroad can be tricky with all the fees and regulations involved. Let’s look at some of the best ways to navigate these challenges.

Through bank transfer

Bank transfers are a traditional and reliable method for sending money abroad. To initiate a bank transfer, you must gather the recipient’s full name, bank account number or IBAN, and the bank’s SWIFT/BIC code. These details ensure the funds are directed accurately to the correct account and institution. You can initiate the transfer by visiting your bank’s branch, using their online banking platform, or calling customer service. It’s crucial to review all information carefully before confirming the transaction. Once the transfer is initiated, you will receive a confirmation with transaction details and a reference number, which you can use to track the status of your transfer through your bank’s website or app.

Through online money transfer services

Online money transfer services offer a convenient and often cost-effective way to send money abroad. To use these services, you need the recipient’s email address or phone number linked to their account on the platform. After logging in to the service’s website or app, you can select the option to send money abroad, enter the recipient’s details and the amount, and confirm the transfer. It’s important to review all details carefully before finalising the transaction. Upon completion, you will receive an email or in-app notification confirming the transaction, including a reference number. Most services provide real-time tracking features, allowing you to monitor the progress of your transfer and see when the money is expected to arrive.

Through mobile payment apps

Mobile payment apps provide a quick and easy way to send money internationally, especially for smaller amounts. You will need the recipient’s email address or phone number linked to their account to use these apps. Open the app, select the international transfer option, enter the recipient’s details and the amount, and review and confirm the transfer. The app provides instant confirmation and often includes additional security features to protect your transaction. You will receive an instant notification confirming the transfer, including the transaction ID. You can use the app’s tracking feature to monitor the status of your transfer and see when the recipient receives the funds.

Through cryptocurrency

Cryptocurrency is a growing method for sending money abroad due to its low fees and quick processing times. You need the recipient’s cryptocurrency wallet address to send money using cryptocurrency. Open your cryptocurrency wallet, select the option to send, enter the recipient’s wallet address and amount, review the transaction details, and confirm the transaction. Your wallet will generate a transaction ID upon confirmation. This ID can be used to track the transfer on a blockchain explorer, where you can monitor the status and confirmation stages until the funds reach the recipient.

Through money transfer operators

Money transfer operators, such as Western Union or MoneyGram, provide another reliable way to send money abroad. You need the recipient’s full name, destination country, and possibly their address and phone number. You can initiate the transfer by visiting a physical location or using the operator’s online platform. Provide the recipient’s details and the amount to be sent, pay the transfer fee, and receive a reference number. This reference number allows you to track the status of your transfer through the operator’s website or customer service. The recipient can typically pick up the funds at a local branch or agent location by providing identification and the reference number.

Through postal services

Postal services offer to send money abroad using international money orders or postal transfers. You need the recipient’s full name, address, and phone number. Visit your local post office and choose the international money order or postal transfer service. Fill out the required forms with the recipient’s details and the amount, pay the service fee, and receive a receipt with a reference number. You can use this reference number to track the status of your transfer through the postal service’s website or by contacting customer service. The recipient will receive the money order by mail and can cash it at their local post office or bank.

Through cheques

Sending money abroad using cheques is more traditional and suitable for specific situations. You need the recipient’s full name and address. Write a cheque payable to the recipient’s name, ensuring it matches their bank account details. Send the cheque by registered mail or courier to ensure it reaches the recipient securely. Once the recipient receives the cheque, they can deposit it into their bank account. Be aware that it may take several days to weeks for the cheque to clear, depending on the banks involved and the destination country.

Through cash courier services

Cash courier services are an option for sending physical cash to recipients abroad. You need the recipient’s full name, address, and phone number. Visit a cash courier service provider and fill out the required forms with the recipient’s details and the amount to be sent. Pay the service fee, and the provider will handle the secure cash delivery. You will receive a confirmation with a reference number, which you can use to track the status of your transfer through the courier service’s website or by contacting customer service. The recipient will receive the cash delivery at their specified address.

Tips for efficient and cost-effective ways to send money abroad

Planning to avoid delays

Proper planning is essential to ensure timely international money transfers. Businesses should schedule payments well in advance to avoid last-minute rushes that could lead to higher fees or delays. By anticipating payment needs, companies can choose the most cost-effective transfer method and take advantage of favourable exchange rates.

Monitoring exchange rates

Exchange rates can fluctuate significantly, impacting the amount of money the beneficiary receives. Businesses should monitor exchange rates and consider using services that offer real-time rates or rate locks to protect against unfavourable changes. Regularly checking rates and timing transfers strategically can result in substantial savings when sending money abroad.

Understanding and adhering to regulatory requirements

Compliance with international regulations is crucial to avoid legal issues and penalties. Businesses should stay informed about the regulatory requirements in both the sending and receiving countries. Ensuring all necessary documentation is completed accurately and choosing transfer methods that provide compliance support can simplify the process and ensure smooth transactions.

Leveraging technology for automation

Modern financial technology offers various tools to automate and streamline efforts to send money abroad. Businesses can use platforms that integrate with their accounting and payroll systems, reducing manual effort and minimising errors. Automation also allows for better tracking and management of transfers, improving overall efficiency.

Choosing the proper transfer provider

Selecting the right transfer provider is critical to efficient and cost-effective international payments. Businesses should compare providers based on fees, exchange rates, transfer speed, and security features. Reading reviews and case studies can provide insights into the reliability and performance of various services, helping businesses make informed choices.

Maintaining solid relationships with financial partners

Building solid relationships with financial institutions and transfer providers can improve service and secure favourable terms. Regular communication and collaboration with these partners can result in customized solutions that meet specific business needs, enhancing efficiency when sending money abroad.

Future of international money transfers for businesses

The landscape of international money transfers is continually evolving, with technological advancements offering new opportunities for greater efficiency and lower costs. Businesses that stay informed about these developments and adapt their strategies accordingly will be better positioned to navigate the complexities of global trade. 

Real-time payment systems

Real-time payment systems are gaining traction as a solution for businesses to send money abroad quickly and efficiently. These systems allow funds to be transferred and received almost instantaneously, reducing the waiting period associated with traditional methods. By leveraging these systems, businesses can improve cash flow management and respond rapidly to market demands. Key players in this space include SWIFT GPI, RippleNet, and various domestic real-time payment networks that are being interconnected globally. These systems offer enhanced transparency, allowing both sender and recipient to track the payment status in real-time, which is crucial for maintaining trust and ensuring timely transactions.

Currency hedging

It is a crucial strategy for businesses that frequently send money abroad. It involves using financial instruments to protect against the risk of currency fluctuations, which can significantly impact the cost of international transactions. By hedging currency exposure, businesses can lock in exchange rates for future transactions, providing stability and predictability in their financial planning. Standard hedging tools include forward contracts, options, and futures. Implementing a robust currency hedging strategy can help businesses manage risks, optimise costs, and ensure more accurate budgeting and forecasting, vital for maintaining profitability in international operations.

Blockchain technology

It is revolutionising the way businesses handle international money transfers. By providing a decentralised and secure ledger, blockchain can reduce the need for intermediaries, thus lowering costs and increasing transaction speed. This technology ensures transparency and traceability, as every transaction is recorded on a public ledger, making it easier to audit and verify payments. Companies like Ripple and Stellar leverage blockchain to create efficient cross-border payment solutions. As blockchain technology continues to evolve, it promises to streamline international transactions further, making them faster, more secure, and more cost-effective.

FAQs

How do I send money to a business account internationally?

• Decide whether to use a bank transfer, online money transfer service, or another method.
• Obtain the recipient’s business account information, including the bank name, SWIFT/BIC code, account number, and other required details.
• To set up the transfer, Log in to your chosen transfer service, enter the recipient’s information, and specify the amount and currency.
• Double-check all details for accuracy to avoid delays or errors, then confirm the transfer.
• Use your transfer service’s tracking features to monitor the transaction’s status.

How can I send a lot of money internationally?

Sending large sums of money abroad requires careful planning:

• Opt for a method that supports large transfers, such as bank transfers, specialised online transfer services, or forex brokers.
• Ensure that both the sending and receiving countries’ regulations are met, and check any transfer limits imposed by the service.
• Use services that offer competitive exchange rates and consider locking in rates to avoid fluctuations.
• Select a service with robust security measures to protect your funds.
• Be prepared to provide additional documentation, such as identification and proof of funds, to comply with regulatory requirements.

What is the IBAN?

An IBAN (International Bank Account Number) is a standardised international code uniquely identifying a bank account across borders. It includes the country code, check digits, bank code, and account number, ensuring accurate and secure transactions. IBANs help streamline international money transfers, reducing errors and processing times. They are commonly used in European countries and other regions that have adopted the IBAN system.

What is B2B transfer?

A B2B (business-to-business) transfer transfers funds between two business entities. This type of transfer is common for paying suppliers, settling invoices, or managing intercompany financial transactions. B2B transfers can be done through bank transfers, online payment platforms, or specialised financial services for business transactions.

What is the least expensive way to transfer money internationally?

The least expensive way to transfer money internationally is typically through bank transfers. Although they can be slower than debit or credit cards, bank transfers generally offer better value due to lower fees and favourable exchange rates.