Small businesses are increasingly making international money transfers to pay expenses such as the wages of freelancers and staff. However, there are many problems companies face when making these international payments, including slow transfer times and high fees. With these challenges, small business payments are difficult to navigate, especially with the number of alternatives available. For you to find a solution that’ll make it easy for you to make these transfers, keep the following aspects in mind as you compare your options.
Exchange Rates and Fees
One of the biggest problems companies face with international transfers is the cost. As a small business, inflated fees and charges can be damaging to your profit margins. When wiring money through banks it’s important to know what fees are included. Often banks include a service fee, an up-front fee and hidden fees such as a foreign exchange margin. Understand what you’re paying by asking your broker or potential service provider what the associated transfer costs are. There are many online platforms that provide a transparent experience, which lowers the costly barriers for small businesses to conduct work overseas.
Speed
Most global payment providers use wire transfers to distribute money, which can take multiple days or weeks. It’s important for companies to make their payments on time, and this process does not provide small business owners the reliability they need. Ensure to ask your potential provider how they’ll deliver your small business payment and how long that method will take.
Security
There are many illegal activities that aim to break down security measures and steal funds from unsuspecting individuals. Your payments should be made through a reputable payment platform that will protect your money transfers against criminals.
Global Reach
Making global money transfers can get complicated if you have to deal with the variability of policies and practices in multiple countries. This challenge can lead to you working with multiple organizations to manage the different payment requirements. To make this process easier, during your research phase, ask your potential payment provider for the number of global markets they serve. The more countries a payment provider has, the easier it will be for you make international money transfers regardless of the country or currency.
Alternative Providers
Many small business owners are aware of the costs associated with bank transfers and are now looking elsewhere. Though legacy solutions such as PayPal and Western Union provide secure small business payment options, they tend not to be cost efficient or quick.
Fortunately, there are new platforms that make transfers easy, fast, and safe to scale internationally. For example, Remitr is a low-cost solution that allows small business payments to be made to more than 150 countries. With features such as the ability to be integrated with streamlined invoice payment systems, Remitr has become the preferred option for many small business owners.
In conclusion, being aware of the variety of aspects involved with international money transfers will allow you to make informed payment decisions. It’s important to know which solution will provide you with the speed, security and cost that’ll help your business succeed.
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