When making business to business transactions, you can be dealing with large sums of money. Thus, it is incredibly important that these transactions are safe and secure, especially when transferring money internationally. If you transfer large sums abroad to another company, it is important to compare exchange rates and transfer fees to ensure that you are getting the best deal.
Why transfer large amounts of money to another company?
In our increasingly globalised world, there are more and more deals being closed internationally, involving businesses from multiple countries. When securing these businesses transactions, it involves the transfer of large sums abroad between companies. In a situation such as this, neither company wants to be paying through the roof. As such, it is important to ensure that neither the sending account nor the receiving account is hit with huge fees.
Luckily, with international business on the rise, there are more and more financial services to support this. Finding an international money transfer service you can rely on can not only save your company money, but can save a lot of time in the future. Once you do the leg-work of finding a cost-effective and secure solution, this can make your future transactions quick and easy.
According to the World Payments Report from 2017, the estimated number of global electronic transactions showed an 11% increase to more than 522 billion. This is a number that has rocketed exponentially since, especially given the unprecedented surge in e-commerce and electronic payments.
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Why Choose an International Money Transfer Service Instead of a Bank?
It is easy to depend on your local bank when thinking of your first choice when transferring large sums of money abroad. Your local bank can be a convenient option. However, when transferring large sums abroad to another company, it is advisable to use an international money transfer service instead of a bank. This is because banks typically work out to be more expensive. Money transfer services, unlike banks, offer competitive exchange rates usually based on a mid-market rate. In addition, their transfer fees tend to be of a lower interest rate. When sending very large sums of money, this can save thousands of pounds. Also, as time is of the essence, it is worth noting that bank transfers are typically far slower than international money transfer services.
International Money Transfers for Companies
Money transfer services devote themselves to getting funds between accounts at the lowest cost with the most competitive rates. They also promise to be one of the fastest options on the market. This can benefit businesses who are looking for quick, cost-effective transactions and who are looking to save money in the long-run. Other features that may benefit your company are forward contracts, limit orders and recurring transfers.
From a human resources point of view, transferring money internationally can be an essential service. With an increasingly international workforce for many companies, quick and cost-effective international transactions can ease the payroll process. It can also help when dealing with varying payroll regulations between countries and local tax laws.
What are the Best Services for Transferring Large Sums of Money Between Companies?
When transferring large sums of money between companies, there are so many services available that it is difficult to choose between all available options on the market. Some are hailed as the best due to their competitive exchange rates, low fees and easy transactions. These can quickly become reliable services for companies who frequently need to transfer money internationally as it saves them on operating costs as well as saving them time in the future.
OFX is recognised as one of the best money transfer services for companies, whatever the size of your business. They offer different services depending on business size. For example, there is a specific service for small businesses (transferring funds of up to $1M annually) and one for medium businesses (more than $1M annually). Both services are designed for companies who make frequent international transfers of large sums and for whom international transactions are a part of daily operations. Additionally, they offer a service for online sellers which is perfect as more businesses are launched online. Benefits include zero transfer fees, 24/7 customer support and high-speed transfers (the majority of which are processed within 1 business day).
TransferWise is one of the best services available for borderless payments which can benefit companies looking to make international transfers. This is particularly beneficial for companies working with multiple international accounts in multiple currencies as it allows your company to manage everything in one place. They do have limits in place based on how much you can transfer; however, there is a loophole in this respect. If you want to send a single transfer, there is a maximum limit of £500,000 for one transaction. However, you are still able to process large amounts (such as £5 million) across multiple payments. That being said, TransferWise recommends contacting customer support for transactions such as these in order to ensure a smooth transaction.
Paying Taxes on International Business Transactions
When sending large sums of money from one company to another, or to an individual account, you should always be aware of any international tax laws that you may incur. There is a lot of legislation protecting companies from double taxation however you should always be on the lookout for additional taxes that you might levy. It may be worth hiring a specific tax lawyer, depending on the size of your company and the frequency of international payments.
When transferring money internationally from the UK, there is no limit on the amount of money that can be sent. However, the FCA (Financial Conduct Authority) and HMRC (HM Revenues and Customs) monitor international money transfers to detect any suspicious or illegal activity.