When it comes to sending money overseas for your company’s international business payments your bank will almost certainly be able to assist. Typically, they will offer an over the counter service combined with a telephone dialling system and potentially an App. However, rarely will they understand your company’s real needs, objectives and limitations.
When facilitating sending money internationally on your company’s behalf there are just a handful of options. Whether you elect to use your bank or use a non-bank foreign exchange specialist both have their advantages.
Many will lean towards the convenience of their company’s bank, they will already facilitate the ability to exchange funds through the business account and many will be happy to pay the supplementary charges for the peace of mind that they may perceive their banks offers. However, pricing will be poor unless they either hold significant funds with a said bank or have a significant turnover. Technology will almost certainly be limited, and transfer time will typically be longer than a non-bank international payments provider or foreign exchange specialist.
Some business owners may be reluctant to entrust their company’s capital into a non-bank provider. In recent years there have been a few negative stories surrounding the sector and whilst regulation standards continue to improve many companies don’t have the standing associated with a bank. Whilst this is true, serious outfits such as Currencies Direct offer the added peace of mind associated with Banks. Currencies Direct which transact many billion every year boast a Dun and Bradstreet level 1 rating. All client’s funds are held in segregated accounts held by major banks and they are fully regulated by the FCA and offer a range of services and contracts which will allow you to maximise you’re the businesses capital and profitability.
Whilst companies such as Currencies Direct represent the ‘gold standard’ of non-bank currency and international payments provider regrettably they don’t represent the entirety of the industry and caution should be aired when selecting a provider. Always ensure that research is made regarding regulation and segregated accounts use when using a less well-known company.
when the initial research has been carried out and you feel comfortable using an international business payments specialist the benefits will not only be seen in the ease of use but also the reduced cost of payments. Typically, a bank will charge anywhere between £15-35 per transfer and subject to the number of payments being made this quickly becomes significant. Encouragingly many non-bank providers operate a no-fee policy ensuring cost are dramatically reduced. This absence of transfer fees coupled with a notably more competitive rate can do wonders for the average SME, with one in ten now estimated to transfer in excess a million pounds each year.
Whilst a superior exchange rate and the ability to send money without fees will convince many to at least consider switching from their bank to a specialist payments provider, there more advantages and other areas where FX brokers excel when compared to the bank.
Companies which offer wallets will allow you to hold numerous currencies, this can be extremely useful if either you have offices overseas, pay staff or freelancers overseas or have suppliers which request payment in different currencies. The wallet functionality will also allow you to receive payment in other currencies providing the payments can be confirmed with supplementary paperwork.
Banks will typically request that significantly sized payments are made in branch and at best will only offer a telephone dialling system. Only companies with a significant FX turnover will receive a personal account manager and proactive approach to their currency requirements. As these specialists purely deal in FX they will have almost certainly assisted similar businesses and therefore will have excellent suggestions in order to for you to maximise your currency and streamline your payments.
Alternatively, a specialist will allocate each company with a currency specialist who will keep the account holder up to date with the latest economic data and significant currency movements. However, if you provide to exchange the currency in your own time, you’ll be able to do use an online platform or APP, meaning you can exchange your company’s money around the clock.
Leading currency specialists will also improve on the levels of service experienced by business owners. Many leaders in the sector have very favourable Trust Pilot and Feefo ratings and companies typically thrive on referrals meaning their clients receive the very best in terms of levels of services.
Regardless of the size of your operation a business payments specialist offers an array of contract options allowing you to benefit from currency strength and protect against currency weakening. They’ll offer you the ability to mitigate by fixing the day rate for a date in the future and guide you proactively on future requirements.
If your business makes lots of small payments, they will be able to offer you an efficient way to do this, meaning that your finance or payments clerk will free up hours of time and be able to focus on other more beneficial tasks. Leaders of multiple payments systems allowing a company to upload a simple spreadsheet into a payments engine and pay hundreds of beneficiaries in multiple currencies in just a few clicks.