Top six things to look for in your money transfer provider
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In today’s world of globalised commerce and advanced technology, many small and medium enterprises (SMEs) tend to do business across the world. Whether it is buying materials from an overseas supplier or paying staff salaries in remote locations, more and more cross-border payments are now being done regularly.
For SMEs, making money transfers to international recipients mean going through the banks and paying high fees, right?
The arrival of money transfer providers over the past few years means SMEs now have more choices when it comes to sending money overseas.
Whether your business is transferring money on a regular basis to pay for staff across the world or you’re buying big-ticket items from overseas suppliers, money transfer providers can offer competitive rates.
It pays to scout around and compare the real cost of foreign exchange transactions to your business. You may not know it, but there’s a big chance that your business could be paying too much in transaction fees, FX spreads and other non-transparent fees being charged by the banks.
Better rates, fast transfers and better customer service
Compared to the banks, money transfer providers usually offer better rates, faster transfers and better customer service. But can these money transfer providers – usually fintechs – deliver what the banks and other more established financial institutions can?
Let’s have a look at some critical points you need to consider as a business owner when making international money transfers and compare the service and cost between banks and money transfer providers.
Here are the top six things you need to consider when looking for a money transfer provider.
Better FX rates on every transfer
Unlike banks that have multiple branches, money providers usually operate using a lean and efficient team of FX experts. This means they keep their operating costs down and can pass on the savings to their clients. If you can get better foreign exchange rates from a money transfer provider, it could mean big savings for you particularly if you’re doing regular payments or fund transfers.
Compare the FX rate you’re getting from the bank or from other providers to make sure that you’re getting the most competitive and most appropriate rates for your business.
As an alternative to banks, money transfer providers in general offer transparent fees, which is one of their most obvious advantages over the big banks. As a business owner, you want to know what fees and charges are being incurred when you make international money transfers.
If you are being slugged with hidden fees and unexplained amounts for every FX transaction, it may be time to part with the bank and partner with a money transfer provider.
Do you know all the fees being charged by the banks for your foreign exchange transactions? Make sure you are not paying any unnecessary fees.
Using advanced technology to deliver their services, money transfer providers can deliver a more efficient and faster transfer than going through the banks. In most cases, once all the compliance and regulatory checks are cleared, funds can be delivered to recipients within a few hours. With many banks, money transfers could take 2-3 business days.
In today’s world of instant transactions, you want to know that the money you’re sending to international recipients is delivered quickly and efficiently.
Are your money transfers getting to your recipients on time? Or are you missing out on transactions and being slugged additional fees on the other end.
Unlike banks with limited physical presence, money transfer providers usually operate on a global network. While some may only service the major markets like the US, UK, Europe and Asia, most of them service multiple countries. This means that whether you’re sending money to pay remote staff salary in Hong Kong dollars (HKD) or buying from a supplier in Euro (EUR), most money transfer providers will be able to process the transaction.
For example, if you use Instarem for Business, you access a multiple-currency platform that allows you to send and receive money to and from about 65-100 countries (terms & conditions apply).
While banks may also be able to do the transaction, most likely it will cost you more and will take a longer time to complete.
Does the bank allow you to transfer money across the globe or in most countries where you do business? Or do they reach only a limited number of countries and regions?
Most money transfer providers are niche players. And because their expertise is foreign exchange and international money transfer transactions, they can provide businesses with laser focus attention and support for all things related to international money transfers.
Do you have access to a Relationship Manager when you need to ask currency-specific questions? Or do you only get generic and vague responses from bank staff with limited foreign exchange knowledge and experience?
Better customer service
With foreign exchange experts operating most money transfer providers, they can deliver better customer service that you won’t get from the banks and other financial institutions. Should you need help with their money transfer platform, they can provide guidance and support.
Before you go…
Given the alternative and the benefits of using money transfer providers, why would you keep using the banks for international money transfers?
Remember, if you are paying high fees for every FX transaction, they could be eating up on your business profitability.
If you want to know more about international money transfers and how you can get better rates, faster transfers and more efficient customer service, sign up for your free Instarem account today.
Instarem stands at the forefront of international money transfer services, facilitating fast and secure transactions for both individuals and businesses. Our platform offers competitive exchange rates for popular currency pairs like USD to INR, SGD to INR, and AUD to INR. If you're looking to send money to India or transfer funds to any of 60+ global destinations, Instarem makes it easy for you. We are dedicated to simplifying cross-border payments, providing cutting-edge technology that support individuals and businesses alike in overcoming traditional fiscal barriers normally associated with banks. As a trusted and regulated brand under the umbrella of the Fintech Unicorn Nium Pte. Ltd., and its international subsidiaries, Instarem is your go-to for reliable global financial exchanges. Learn more about Instarem.