What Benefits Can Online Money Transfer Bring to Your Business
By Space Coast Daily // February 19, 2023
Money transfer is the foundation of globalization. Businesses around the world can now trade with each other without having to send bags of cash or other forms of physical payment, which carries its own risks.
Yet, some businesses are reluctant to adopt online money transfers. This article is for the owners of such businesses because we’ll show you the many benefits you can get by adopting it.
What Is a Money Transfer?
It refers to transferring funds from one individual or corporate entity to another, either electronically or physically. For example, you can use an online payment platform like PayPal or Silverbird to send funds to a supplier. Alternatively, you can visit your physical bank branch and initiate a wire transfer. The main thing is that the cash gets from the sender to the intended recipient.
Impact on Business
Online currency transfer has had an enormous impact on businesses. It has made it easier for businesses to function, especially those serving an international clientele. There’s no need to worry about how to send or receive payments again. You can just register on a digital banking platform and do that in a few clicks.
The benefits of online transfers for businesses include:
Easy to Use
As we’ve mentioned, digital banking platforms have made it easier to conduct both local and international transactions. They’re much easier to use and more efficient compared to visiting your bank each time you want to pay a supplier or vendor. You just need to find a suitable platform, and there are many to choose from. There may be specific requirements and you’ll need to provide documentation to register. Once you get it up and running, you can start sending and receiving funds seamlessly.
No Paper Documentation
A few decades ago, it was compulsory to fill out a lot of paperwork and append a lot of signatures to initiate a transfer. However, online banking has removed the need for most of the paperwork.
You’ll likely face a little paperwork when signing up on the online transfer platform. Afterward, you just need the exact bank details of the person you intend to send funds to, which you can do in just a few steps.
Reducing Commission Costs
Digital banking is an intensely competitive sector, with platforms fighting each other to attract customers. One of the primary incentives they offer to entice customers is lower transfer fees than banks usually charge compared to other rival platforms.
You can take advantage of this to send cash with as little commissions as possible. Some platforms even offer free transfers for new customers. The reduced commissions can be significant, especially for high-volume businesses.
Management of Financial Receipts and Expenses
Keeping track of finances can be challenging, especially for small businesses that can’t afford complex financial management software. However, digital transfer platforms present a suitable alternative because they keep logs of every transaction you make.
This way, you can keep track of your cash flow and expenses without fault and identify the source of every incoming or outgoing fund. This is very important for when you’ll need to prepare financial reports to submit to tax authorities or stakeholders.
Safety is the utmost benefit of using online transfers. It’s much riskier carrying cash around whenever you need to make a payment or after receiving a payment. It’s also inconvenient hauling cash around, especially for mid-sized or large businesses with a high transaction volume. Instead, you can launch the money transfer app on your device and make any payment you want in a few steps. There’s no risk of theft or misplacing your cash.
As the world becomes more digital, businesses that don’t adopt online money transfers will likely lose customers and get left behind. We’ve listed and explained some of the main benefits of adopting online transfers.
The key is to choose a suitable platform for this purpose, e.g., Silverbird, which lets you send or receive 30+ currencies.