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The Changing Overseas Money Transfer Industry Helping Small Businesses

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Small businesses that were required to make or receive international payments were facing high costs, high paperwork and long processing times until a very short time ago. This was when access to the institutional exchange market was limited to banks, governments and large corporations.

Now, technological advances have enabled small and medium-sized businesses to benefit from fast, cost-effective services. What makes things even better is that they can choose from a number of companies specialized in money transfer.

Why are banks no longer a good bet?

If your business uses a bank to send money abroad or to receive international payments, you will most likely have to pay foreign exchange fees each time. With frequent payments, the cost tends to accumulate rather quickly.

Consider this: you receive each month the equivalent of $ 5,000 from an international customer, and your bank charges a 2% fee to convert the foreign currency into US dollars. In one year, you will end up paying about $ 1,200 in exchange fees. What if you had to make payments for a job you assign to another country?

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Multi Currency Accounts

A multi-currency account works quite like a current account with a big difference. It allows you to hold funds in multiple currencies. While most major banks in the UK and Australia offer multi-currency accounts, they are not as common in the United States. In addition, the fees you will have to pay to maintain your account and exchange currencies are generally high.

Fortunately, some specialized transfer companies have begun to offer multicurrency accounts for small and medium-sized businesses, giving them the opportunity to save money through minimal fees and competitive exchange rates. . Depending on the location of your business, you may want to consider opening a multi-currency account with companies such as TransferWise, WorldFirst and InstaReM.

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How do these accounts work

Multi-currency accounts work the same way, and you can request one as a small or medium-sized business, an online seller or a single trader. Some of these accounts are also available to freelancers.

When opening a multi-currency account, you get local bank details or receipt accounts from different countries. The most popular are the United States, Canada, the United Kingdom, Europe and Australia. These accounts are grouped under the same umbrella and offer you simple and economical ways to receive payments in the corresponding currencies. A multi-currency account generally allows you to hold funds in multiple currencies, making cross-border payments simpler and more affordable.

The TransferWise Borderless Account is delivered with Receipt Accounts in:

  • United States (USD)
  • The United Kingdom (GBP)
  • Europe (EUR)
  • Australia (AUD)

With the WorldFirst World Account, you receive accounts in:

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  • United States (USD)
  • Canada (CAD)
  • The United Kingdom (GBP)
  • Europe (EUR)
  • Australia (AUD)

Depending on the company you are registering with, you can add funds to your account using bank transfers, debit cards, or credit cards. You must decide when to withdraw funds in your local bank account. When you do, you benefit from competitive exchange rates.

Conclusion

The upcoming road is full of challenges for specialized money transfer companies. Those who rely on technology to improve their offerings force others to become more competitive. For small businesses dealing in the rapidly growing world market, the situation can only improve.

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