International business needs international transfers of money. The competition in every field is getting harder and harder so transferring money the best, most effective way is very important.
The best way to send and receive money now
As a entrepreneur you have to send and receive money on daily basis. Nowadays almost each business operates internationally, will be operating internationally or will be dead.
Average margin (return on sales) because of increasing competition is getting lower and lower and now is c. a. 5-6%. On the other hand you still have to pay tons of money for traditional banking operations. Sending regular check or making bank transfer you have to spend on it 5-25%…
Why not to cut or at least limit such terrible cost? It’s possible and now we are going to explain in details how to do it correctly.
Below you can see some ways of sending and receiving international transfers. Some of the methods are very expansive…. You are not obliged to use them, choose the better, cheaper ways.
SEPA – just for Europe
If you are any European country based firm you can use the SEPA transfers just using your European bank account. Cost of the SEPA transfer is not higher than 10 Euro regardless the amount of transfer.
SWIFT – bank transfers all over the world
If you are from outside Europe you can choose SWIFT transfers. They are much more expensive than SEPA transfers however (reach even 25% of the transferred sum). Beside they take several day and some of the cost can not be predicted in front of (the route of the transfer in not certain neither the detailed cost). Using SWIFT u can set different modes of cost (OUR – you pay the price, BEN – pays beneficent , SHA – cost is shared)
Paypal – convenient not cost efficient
Paypal is popular (because is convenient and global and… seems to be not so expensive) but it is one of the most expensive ways of transfer- you simply not aware the cost of exchanging money and the spreads, especially not so popular currencies.
Online money transfers – the best: most convenient less expensive way of sending money
For sure the most cost effective transfers are SEPA and internet transfers (CurrencyFair, TransferWise), SEPA has limited territory however…
Way of transfer
(fees, spreads, other)
Western Union, MoneyGram etc.
SEPA bank transfers (European Union, transfers only in Euro)