The best way to do cross-border remittances
You are the CFO of your company and you have just started working with a supplier based in China. One of your responsibility would be to find the best way to transfer money internationally. What are the factors which you would need to consider?
There are several factors to consider. Speed versus cost, convenience versus security, the destination, the amount of money you are sending: all of these things can have a big impact on what is the ‘best way’ way for you to send your money internationally. The easiest way to send money will change depending on your specific needs.
The exchange rate
The exchange rate will often determine the overall cost of your remittance. As opposed to fees, the exchange rate may often fluctuate and can be much more expensive, particularly when transferring large amounts.
Often this is the single largest factor to the cost of your remittance. It is therefore important to consider the FX rates the banks have been charging your company.
The transfer fee
All remittance providers will charge you for the cost of using their services to send your money abroad. It is important to find out exactly how much you can expect to be charged for your transfer. Transparency is critical to make a good decision. At Opal, depending on your profile, at times we offer free transfer fee charges. Do contact us to find out more.
Some providers are more equipped for transfers between particular countries (known as currency corridors) and can offer much faster transfer times and others. This is often true for established providers as they often have currency corridors where they can provide better rates and faster delivery.
Good customer support is essential when you are dealing with remittance. You need to know that you will be supported if you encounter any technical issues.
Transfer delays, unexpected fees do happen to the best of providers. If that happens, it is always comforting to know that your provider can be reached quickly for prompt assistance.
Ease of setting up an account
The procedures for setting up an account to do cross-border money transfer varies. The complexity will differ between different providers. As above customer support is essential to help walk you through the process of setting up an account.
These are some factors to consider when finding the best way to make a cross-border remittance. Every company would have different priorities in determining what is the best way to make a cross-border remittance. It is important to list them down and compare them to remittance companies in the market.