Whether you’re an entrepreneur or a small company, you’ll want to keep costs down when paying freelancers and suppliers overseas. With so many B2B money transfer providers, it can be hard to choose the right one. Discover how your company could save up to £1,000 annually by switching to Azimo Business.
Using your bank to make international business payments
Banks offer a safe haven for both your business and personal accounts. From loans, deposit boxes, forex, investments to payment services, banks are essential for handling your finances. However, using these additional features often comes at a high price.
Using your bank to make overseas business payments is no exception. Through a combination of high transfer fees and commissions, sending money abroad with your bank usually works in their favour.
The transfer fee is the amount you’re charged to make a transfer. Transfer fees vary from one bank to another and are typically calculated based on the amount you’re sending and the receiving currency. The commission is the mark-up, i.e. the extra, you’re charged on top of the current mid-market exchange rate.
Sending money to freelancers and suppliers with PayPal
PayPal wants businesses to know them as “the safer, easier way to pay” but this can be misleading. That’s because their slogan carefully omits that it’s one of the most expensive ways to pay too.
The main advantage of PayPal is its extensive payment network. It covers over 200 global markets and you can earn air miles, cashback and rewards every time you make international payments.
But these rewards come at a high cost. That’s because PayPal’s fees comprise of fixed commissions and high mark-ups on the real, mid-market rate.
On top of that, there’s a 3-4% currency conversion fee to pay. With all fees considered, PayPal adds up to an expensive way for your company to make business payments.
How much can business customers save each year by using Azimo Business?
If you’re a start-up with freelancers in Germany, the cost of sending one payment with HSBC is £27. And let’s assume you make at least one payment per month, that’s £324 in fees every year. With Natwest, that yearly cost nearly doubles to £564 and with PayPal, it skyrockets up to £840 per year.
For the same number of transfers, Azimo Business customers can send money to Germany for as little as £108 per year. Our useful tables below illustrate the savings businesses can make when sending to some of our popular receiving countries.
|Cost per transaction to||Azimo Business||HSBC||Natwest||Paypal|
|Annual saving when sending to||vs HSBC||vs Natwest||vs PayPal||Average saving|
*Some figures have been rounded up to the nearest pound (£). The costs shown serve as a guide, exact rates will vary. The tables are based on rates gathered directly from each provider, over the phone, via online chat forms and currency calculators. To calculate the results we use the mid-market rate provided by independent, reliable sources, such as XE.com
With fair exchange rates and transfer fees starting as low as £0.99p, Azimo Business can help keep your business costs down. Get your first five transfers fee-free and save even more when you pay freelancers and suppliers overseas.
Azimo Business is the faster, cheaper, safer way to make business payments overseas. Download the Azimo app on iOS or Android and start sending money to suppliers and freelancers around the world. Register today to start sending funds to your business contacts.