Sending money abroad - What to expect?

When it comes to sending money abroad most people within businesses tend to focus on the exchange rate. What is the market rate? And how close can I get to that when making our payment? There are many factors that are taken into account when quoting an exchange rate however be sure to understand the fee you are being charged and how this compares to other providers on the market. Of course, you don’t want to be overpaying however it's also worth considering the service you require for your foreign exchange solution. Do you need an online system? Can you access reports to make accounting for your fx easier? And do you need a specialist to help you devise a strategy to cover all your foreign exchange exposure?

Moving away from the exchange itself there are other, less obvious charges to consider. Banks can charge anything between £30 to £50 to make international payments and sometimes these costs are actually wrapped into monthly, quarterly or even yearly invoices. There are also potential intermediary and receiving charges which again may be hidden from view for invoicing or perhaps appear as fairly small but frequent debits on the account. Make sure you ask yourself, do you really know what you're paying to make an international payment?

How quickly you are able to make international payments is arguably as important as how much they cost. It’s no good saving money on the payments side but then supply chain delays adding costs later down the road. The speed of payment is again dependent on many factors such as territory, currency and compliance. However, currency specialists such as Currency UK can make most international payments within the same day. It’s also crucial to ensure there are processes in place to double-check payment and beneficiary details to avoid unnecessary delays and costs. 

Another aspect of sending money abroad is the risks associated with exchange rate fluctuations. Making a one-off payment at the current exchange rate is ok, but your business can find itself paying significantly more over a financial year if currency movements haven’t been factored in. Finding a foreign exchange solution that allows you to lock in exchange rates and protect profit margins in our recommended approach and solutions are available that ensure cash flow remains unaffected.

Sending money abroad can be daunting but with the right solutions and expertise in place, it can be managed easily and in a cost-effective manner.

Author: Katie Keith
 
Website:https://www.currencyuk.co.uk 

Sign up link:https://bit.ly/3NJouK5


picture: <a href='https://www.freepik.com/vectors/electronic-payment'>Electronic payment vector created by jcomp - www.freepik.com</a>