Business-to-business transfers are an essential part of running a successful company. We understand that businesses want to optimize this transfer type. Therefore, we have researched the top companies for B2B money transfers to save you time. We also provide the different types of B2B transfers you might encounter.
What are B2B money transfers?
B2B money transfers refer to one business sending money to another. This might be to pay for supplies or services. For example, a construction company that would buy bricks from a supplier would need to execute a B2B transfer.
Most B2B transfers are bigger in size than C2B (customer to business) transfers and recurring in many instances. Also, there are the complications of FX rates that need to be considered to ensure profitability is not hindered.
This transfer type might include sending money from one business account to another. This can be done if business owners need to manage funds between multiple businesses. Such transfers need to be documented, and the tax implications of this must be understood.
Best money transfer providers for B2B transfers
This section will cover the top 3 money transfer services for sending funds between business accounts. These were chosen because they offer low fees, competitive FX rates, and fast transfer times.
1. Currencies Direct
Currencies Direct is a top choice for B2B transfers because it does not charge fees. This is one reason why it is popular among businesses that need to cut costs with money transfers. Also, they offer business-friendly features like forward contracts and multi-currency accounts with over 60 currencies.
Live exchange rates are offered that update around the clock. This ensures that businesses can enjoy the rates that reflect current market conditions. They do not charge a markup percentage for currency conversion, which means the savings will be significant compared with banks.
TorFX is a competitive business-oriented money transfer service that enables customers to set up forward contracts and send mass payments. This means businesses can automate the transfer to many business accounts in a single transaction. It is ideal when trying to set up recurring payments to a network of suppliers.
Also, the service provides a solid mobile app and charges no fees for transactions. Instead, a markup percentage is charged on currency conversion of 0.5-1.5%.
OFX offers a global network of 195 currencies, which means B2B payments are available around the world. Also, they have a customer service team that provides help 24/7. This is ideal for business owners that operate in different time zones and need help with executing transfers.
Flexible transfer options are provided, which include forward contracts and recurring transfers. Also, businesses can lock in an FX rate for 24 hours. This enables them to manage costs when converting currencies during a B2B transfer.
How to make B2B international money transfers?
In this section, we provide a step-by-step process of executing B2B international money transfers. These are simple to follow steps that apply to most money transfer companies.
Visit our Companies page and select a specialist transfer provider that matches your needs.
Register with the money transfer service and complete the verification steps.
Choose a method of transfer, which could be a balance transfer or bank transfer.
enter the recipient details and choose the amount and currency to send.
Review the details and confirm the transaction.
What makes a business money transfer different?
This section helps you understand why business money transfers are different than regular transfers customers might make when sending money to friends and family. This allows you to think about the important aspects of business transfers.
Bigger size: B2B transfers are usually bigger than regular transfers. This means the costs must be considered so they do not spiral out of control. Choosing a low fixed fee structure is advantageous with large transfer sizes.
Taxes: the tax implications of B2B transfer are different from other transfer types. They will have specific laws that must be followed to ensure that the correct taxes are paid. Hiring a tax accountant can help with these matters.
More complex: business transfer can be more complicated if a business wants to optimize the costs and time taken to send money. This includes using features like recurring payments, forward contracts, and mass payments.
What to consider when making payments between business bank accounts?
The money transfer service you use is one of the top considerations that should be made. You need to choose a service that offers low fees, fast processing times, and matches the mid-market rate. Getting all three advantages from a service might not be possible, but you can get pretty close. For instance, Currencies Direct and OFX are solid options that provide no transfer costs.
You also need to think about taxes when executing any transaction in a business. Make sure to document all transactions so they can easily be retrieved at a later date. Also, think about the financial health of a business from a cash flow perspective. This ensures that you do not send money out of the business account that needs to be used for vital expenses.
Should I use my bank for business-to-business money transfers?
You should not use banks for B2B money transfers because they charge high fees of around $20 to $50 per wire transfer. Also, the markup percentage can be as high as 5%, which will eat into the profitability of running a business.
Additionally, the transfer speed is slow at around 2-7 business days, which can be problematic from a cash flow perspective. Businesses need access to funds and suppliers fast for smooth operations.
Instead, consider using a competitive money transfer service for business money transfers. You can enjoy faster processing times and low costs. Also, they come with business-friendly features like forward contracts and mass payments.
Can you send money from a personal account to a business account?
It is possible to send money to a business account from a personal one. You may wish to do this to pay back a personal loan or to fund your business with extra revenue for growth. It is a good idea to document such transfers so you can keep records to retrieve for tax purposes at a later date.
Wise is a useful money transfer service that enables customers to easily send money from their personal to a business account. Also, there is no charge for the transfer, and it can be executed instantly.
Can you send money from a business account to a personal account?
You can send money from a business account to a personal one for various reasons. This includes paying yourself a salary, paying dividends, and getting a personal loan. There might be tax implications for the transfer, so you should consult a tax accountant to help you with the legal side of the transfer.
TorFX is a good choice for sending money from a business account to a personal one. They charge no fees for transfers, and the FX mark-up is around 1-3%, which is more competitive than most banks. Also, they offer a handy customer service department that is online Monday to Saturday.
Summary: Best business-to-business money transfers
Overall, there are many good money transfer services for making business transfers. The options we recommend include Currencies Direct, OFX, and TorFX. These companies were chosen based on their ease of use, flexible payment options, and low fees.
To continue learning more about international money transfers for businesses, consider reading our other guides. You can start with Top 5 FX Partners for International Business Transfers and Guide to Business Currency Exchange for International Transfers. Reading these guides will help you understand how to reduce costs and reduce the transfer time of international business transfers.