Sending money overseas can be tricky as you need to keep track of several factors, primarily the exchange rate. Learning how this system works and following a good strategy will help you transfer money safely, within legal parameters. Fortunately, overseas money transfers are now easy with modern communications technology. There are many protections in place to make sure all transactions are safe and your money doesn’t lose any value. Here are some strategies for sending money overseas:
Bundle payments
If you need to send multiple payments, try to do it at the same time when the exchange rates are low. Bundling payments in one transfer with low rates will save a lot of money. This is very unpredictable so set up an alert to keep an eye on rates, sending the money through when they look particularly low. Exchange rate information is easily available online and creating alerts for it doesn’t require much effort.
Secure rates
Many international money transfer services provide an option to freeze rates during this transaction. The currency market fluctuates regularly so its value can change unfavourably during a transaction. For example, if you send $50,000 at a reasonable exchange rate and see a 2% increase while the money is in transit, you’ll have to pay an additional $1,000 on the transaction.
This doesn’t mean much in low-value transactions but makes a significant difference in high-value ones. Securing a value during a transaction is a good way to ensure fluctuations in currency value don’t have an impact on it. The value will remain the same during the transaction, whether rates rise or fall.
Stick with one establishment
If you’re working with one establishment and are satisfied with their services, stick with them. If you work with an institution regularly, they will be more willing to work around exchange rates and transaction fees. You have more negotiation power because companies prize regular and consistent customers. It’s also less time consuming to deal with one company because you’re familiar with their procedures.
Choosing good banks
Many people don’t transfer money through banks because it can be more expensive. They use disruptive money transfer services in the hopes of finding better rates. However, there’s no need to skip banks entirely. These institutions have now upgraded their services to keep up with money-transfer options. If you have a good, personal relationship with a bank, they will also be aware of your transaction history. When they know you’re less likely to commit fraud, this process can be as easy as filling up a form and transferring funds.
Great banks will ensure all transactions are secure, offer relatively good rates, and assist you in the process. It’s better to work with a familiar establishment instead of trying out new transfer services.
Discuss payment timings
Working with the recipient on different payment timings can also help save money. Most business owners will be willing to accept payments at a more convenient time as long as it is within the pre-determined due date. This will allow you to choose a time that’s more convenient for foreign exchange when rates are likely to be at their lowest. This allows you to save money on regular business transactions.
Always keep an eye on the market
Keeping an eye on currency rates, patterns, and different factors that influence it can help with international transfers in the future. You can plan them according to market conditions, ensuring you find the best rates possible. It’s also a good idea to speak with a finance expert with experience in international transactions. They will offer more strategies that can help.
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