It is common practice for most businesses nowadays to make international transfers. It is recorded by the World Bank that international remittance flows to low-and middle-income countries (LMICs) are expected to reach $630 billion in 2022 (World Bank, 2022). As business owners, international payments can be a crucial part of business operations; therefore, some of you might be wondering how exactly do you send money to a foreign bank account and are there any alternative ways to send money abroad.
How do you send money abroad?
The typical way of sending money abroad is to head to your local bank. Most local business bank accounts can make cross-border payments. If you are visiting your local bank to conduct an international transfer, the employee at the bank will typically ask you to fill out a form. Before heading to the bank, you will need to prepare the information needed for international wire transfer.
On the other hand, most banks nowadays allow you to make international transfers online. It is done through the global SWIFT payment network. The SWIFT international payment network is a network that is used to send or receive international electronic payments. It is known to be secure and accurate. However, there is usually a minimum transfer fee between $10 to $30 and the payment can take 1 to 3 days, depending on the country you are sending to.
6 steps on how to do a wire transfer online:
1. Figure out the wire transfer section on your bank’s website or mobile app.
2. Find out your online transfer limit to avoid any hassle.
3. Enter the recipient’s bank details. You will need to prepare the information needed for an international transfer e.g. the name and address of your recipient’s bank, your recipient's IBAN (International Bank Account Number) and Bank Identifier Code (BIC) or SWIFT code.
4. Enter the amount and choose the currency you want. If you are sending from Singapore to a foreign bank account, you may be required to convert your SGD into the desired currency prior to sending. Be prepared for poor currency exchange rates, which will be an added expense.
5. On top of the exchange rate fee, banks will also charge a minimum transfer fee between $10 to $30.
6. Wait for your money to arrive. This can take from 1 to 5 days depending on the country you are sending to and when you are sending it. If there is a national holiday then you can expect delays.
Looking for an alternative international payment service provider?
As small business owners and startups, every little fee adds up and can massively impact the business. For a different option, consider TranSwap. TranSwap’s multi-currency global bank account allows you to protect your profit and expand strategically.
- A hassle-free alternative to securing local bank accounts in each country of operation.
- Pay to over 180 countries.
- Hold up to 34 currencies.
- Smoothly manage cash flow and bolster your competitive advantage in the local markets by paying and receiving money in the local currency.
- Instantly make international payments with no hidden cost and not having to maintain a minimum account balance.
- Use real-time exchange rates with no unwelcome surprises.
- Quick, secure and fast international transfers by accessing our global network of bank partners.
- Everything can be handled online. There is no need to visit a physical branch and no paperwork or phone calls.
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