Modern UK businesses are growing increasingly global and face an increasing need to process many complex international payments.
Cross-border transactions are no longer an exclusive domain of large multinational corporations. Small- and medium-sized enterprises (SMEs) all around the world are now sending and receiving money across international borders for critical business needs, e.g.:
- Paying for an invoice to a foreign supplier
- Settling business travel expenses
- Transferring salaries to overseas employees
- Repatriating foreign subsidiary revenues
Facing the Challenge
Large corporations have the resources to set up sprawling and well-staffed treasury departments that handle such transactions and may even receive preferential treatment from banks.
SMEs do not have the same luxury and constantly must face concerns about security and financial efficiency of their international payments.
In a precarious post-Brexit environment, these concerns can get overwhelming. Here at AccendoFX, we believe in helping UK businesses and households navigate the pitfalls of international foreign currency (FX) transfers with ease, safety and financial benefit.
Our goal is to make sure that our clients understand how international money transfers work, how they can save money and time while at the same time becoming more savvy and informed business owners.
The purpose of this report is to lay out the often-overlooked rules of the road for international money transfers, to warn of potential pitfalls and to help UK business owners become better stewards of their money.
Rules of the Road
Without further ado, here are the Key Rules of international money transfers that UK businesses need to keep in mind in order to process their cross-border transactions quickly, securely and efficiently.
- Understand your needs. Know how much you need to transfer, where, how often and when.
- Plan ahead. Don’t leave crucial transactions for the last minute and prepare yourself in advance.
- Partner with a broker. You value your money and need to know that the person managing your transactions is a reliable expert.
- Know the market. FX markets are a living, moving organism and you can take advantage of trends within them.
- Understand the service. Not every cross-border transfer is the same and some brokers can offer extra benefits to your business.
- Master the timing. Get to know watch orders and forward contracts to secure a better FX rate.
- Beware of hidden fees. Transactions costs aren’t everything, but they are important, so don’t get saddled with unexpected fees.
- Protect yourself. Understand the system to be confident that your money is secure.
- Maintain control. It is your money and you want to take charge of your transfers to protect it and make it work for you.
- Be flexible. FX markets evolve, so be ready to adapt and benefit from sudden changes.
Continue reading to find out more about these Key Rules to take charge of your money transfers and become a more informed business owner.
