When running a business, keeping your financial outgoings as low as possible to help maximise your profits is obviously going to be a chief concern. However, there are various little charges that can cause an especially nasty sting if your company often does business outside Europe. Here are various tips for more cost-effectively dealing with non-Europe employees, customers, and clients.
Don’t transfer money at “fee-free rates”
Though money can be regularly transferred overseas through a bank, beware those banks advertising “fee-free rates”. Often, a bank can make up for a transaction fee’s omission by adjusting the exchange rate higher. Some banks could get away with this due to not publishing daily exchange rates.
Be careful about using a small online transfer company
Such a company that trades under £2.5 million monthly does not need authorisation from the Financial Conduct Authority. Hence, this little-trading firm will not separate your money, while it holds it, from its own accounts. Therefore, the cash will not be protected and so you can’t guarantee that you will be able to get this money back if the company goes bust while holding it.
Use specialist credit or debit cards for regular spending
With these, it is possible to pay for items overseas at an almost perfect exchange rate while incurring minimum fees.
Take advantage of free transfers to linked banks abroad
Some banks allow such transfers, though MoneySavingExpert.com warns that it might sometimes be necessary for both the UK account and the foreign one to be under your name.
Consider transferring more money for lower transaction costs
The Telegraph says that “the larger the amount of money your business transfers, the lower the transaction costs are likely to be”. Therefore, you could check if there is a specific minimum amount that has to be transferred for the deal to be more cost-effective.
Look at monthly international call packages
If you often make international calls from a mobile, you could be surprised by how hefty the per-minute fees are. However, the majority of leading telecoms firms do offer special monthly packages for international calls; so, be sure to research those packages.
Make video calls with Voice over Internet Protocol technology
If there are opportunities to converse with overseas workers and clients through video calls, then take those chances – it’s possible due to VoIP providers including Skype.
Make phone calls with a VoIP provider
It’s also possible to make phone calls through one of those providers, This is MONEY.co.uk advises. Though you will need to add money to your account with that provider, overseas phone calling will remain much less expensive than it would be from a landline.
Use a mobile phone containing an international SIM card
Swapping SIM cards in your phone can be easy and slash costs.
Use a PIN-less calling account provided by Planet Numbers
Whether you want to use a landline or mobile, you can make cheap calls to India, and other non-European places, from the UK if you use a PIN-less calling account from Planet Numbers.