If you're running a business in Australia and need to send money overseas to suppliers or make a one-off purchase, it’s important to find the best exchange rate and a reliable transfer service. Foreign exchange (FX) specialists often offer the lowest rates and fees, and they can provide tailored advice for managing your business' international money transfers.
That said, if you're after speed and convenience, using your business bank account for a direct transfer might be your go-to. However, banks tend to charge higher fees and offer less competitive exchange rates, meaning less value for your money when sending funds.
Having the right system in place for international transfers can save you time and money, and help you to make the best decision.
Choosing a money transfer provider
Just as you have plenty of choice when it comes to your day-to-day business banking, you’ll also have options when transferring money overseas to another business, such as a supplier or contractor. It’s important to compare providers to find the one that offers the best combination of fees, exchange rates, and features for your needs. The right choice can help to save you money and ensure your payments are processed quickly and securely. Here are the main points to consider:
Exchange rates
Simply put, the higher the exchange rate, the more money you’ll get for your Australian dollars. For large transfers, even a small difference in rates can add up to big savings. Compare quotes before you commit to any provider.
Fees
Fees are another key consideration when making a business money transfer. Some services charge a flat fee, while others take a percentage of the transfer amount. Some might even waive the fee for larger transfers. But watch out for third-party fees that can sneak in and increase the overall cost.
Transfer speed
For major currencies like USD, GBP, or EUR, most transfers are processed within 1-3 business days. Make sure you factor this into your payment schedule, so you don’t face delays when paying your overseas suppliers or freelancers.
Currency
Most banks and IMT providers handle transfers in major currencies, but if you're transferring to less common currencies, the rates could differ. Don’t assume that a great rate for USD means a great rate for JPY. It's sensible to compare the rates for the specific currency you're working with.
Support and reputation
Along with competitive rates, make sure you choose a provider with strong customer service. It may be helpful to look for a provider that offers account managers or a support team to guide you through the process.
Transfer limits
Some IMT providers will have minimum and maximum transfer limits, depending on the type of business payment you’re making. For instance, they may restrict how much you can send over 24 hours, a week, or a month. These limits can vary based on the currency, destination country, or the payment method used.
How can I ensure I’m getting the cheapest international money transfer?
Business transfers can quickly add up in costs, so it’s important to keep an eye on both exchange rates and fees. Transfer can be fee-free or, in some cases, be more than $30 per transaction, and if you're sending money multiple times a month, those costs can really add up.
If you want to get the best deal, consider setting up business bank accounts with a few different FX specialists. This way, you can compare rates and fees before each transfer and choose the best provider for the day. Ensure you allow time for the account setup process and verification before making your transfer.
What is the best money transfer company for businesses?
Mozo's Experts Choice Awards is a good place to start. Mozo’s team of expert judges assess a wide range of money transfer providers to identify the best deals for businesses, based on exchange rates and fees. Check out the latest winners of the Mozo Experts Choice Awards for International Money Transfers.
Bank or foreign exchange specialist: which is better for my business?
If you’re only making small, one-off transfers or need speed, a bank might be the most convenient option. But if you're handling large amounts or frequent payments, an FX specialist may be a better choice. FX providers can offer low fees and competitive exchange rates. Plus, other helpful features like:
How do business international money transfers work?
If you're new to international business transfers, here’s a rundown of how the process generally works with a dedicated international money transfer service:
1. Open an account with your IMT provider
Setting up an account with an FX specialist is usually fast and easy. Most providers offer an online application, and you'll need to verify your business details and identification documents to get started.
2. Book your deal online or via the app
Once your account is set up, you’ll enter the transfer details — how much you want to send, where it’s going, and when. The provider will then quote you a rate and fees. If you're happy with the deal, confirm it and lock in the rate.
After that, you’ll need to enter your sender and recipient details including:
- Full name and address
- Bank account details or IBAN (International Bank Account Number)
- The bank’s full name and address
- BIC/SWIFT code - unique identification code found on bank websites
3. Transfer funds to your provider
After confirming the details, you’ll send the agreed amount to the provider. They’ll then process the payment to your recipient’s account. For major currencies, this typically takes 1-3 business days.
4. Set up regular payments
If you’re planning to make regular transfers, many providers offer recurring payment options. Speak with your account manager to get a quote and make sure you’re aware of any potential fees and exchange rate changes.
FAQs
Can I trust online money transfer companies with my money?
It’s helpful to check if your IMT provider is regulated and authorised by ASIC (Australian Securities and Investment Commission), as this may give you an extra degree of reassurance if you do encounter a problem. For more details on how to check a provider's reliability, you can read our in-depth reviews or check out our guide on the safety of sending money overseas.
What’s the difference between a spot rate and a forward contract?
A spot rate is the exchange rate you get immediately when making your transaction. The rates shown on Mozo are spot rates. A forward contract, however, lets you lock in an exchange rate for a future transfer. This can protect your business from currency fluctuations and help you take advantage of favourable rates ahead of time.
How often are the rates updated on Mozo?
We update exchange rates on Mozo frequently and regularly, but keep in mind that foreign exchange rates can fluctuate. The rate you see on our site might differ slightly from the exact rate you receive at the time of your business transfer.
Do I need to set up an account to make a business transfer?
Yes, you will need to set up an account with the bank or international money transfer provider before you can make an overseas business transfer. This is typically a simple process where you complete an online form and verify your business details, including your Australian Business Number (ABN).
What currencies are available for business money transfers?
Most providers can handle transfers in major currencies like USD, GBP, and EUR. For less common currencies, it’s best to check with your provider directly. You can use Mozo’s comparison table to see which providers offer the currencies you need for your business transfer.
How long does it take to transfer from one bank to another?
For major currencies like USD or GBP, transfers typically take 1-3 business days. Some FX specialists, such as OFX and TorFX, may offer same-day transfers. However, transfers to exotic destinations or in less commonly traded currencies may take longer. Always confirm the estimated transfer time with your provider before proceeding.
Besides the transfer fee, are there any other IMT fees I need to consider?
Yes, there are a few additional fees to be aware of, including:
- Amendment fee. If you need to make changes to your transfer details after confirming the transaction.
- Cancellation fee. If you decide to cancel the transfer, there may be a fee, and cancellations are not always guaranteed.
- Receiving bank fees. The recipient's bank may charge fees for processing the transfer, which is beyond the control of the transfer provider.
For more information, check out our guide on IMT fees and charges.
What’s the difference between a personal and business money transfer?
The main difference lies in registration. For personal transfers, you sign up as a private client, while for business transfers, you’ll register as a corporate client. This helps the provider tailor their services to your specific needs. Businesses often have regular, time-sensitive transfers and may need tools like forward contracts to manage exchange rate risks. Individuals can typically wait for better rates before transferring funds.
Where can I find more information about business transfers?
For further details on business international money transfers, visit our business transfer guides section. We've written comprehensive guides on all aspects of sending money overseas for businesses, both small and large.
