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International money transfers for accounts payable officers

Save money when sending an international money transfer to pay overseas invoices for your business.

Thanks to the global connectedness of modern technology, Australian businesses are now able to operate far beyond our national borders. Whether sourcing stock from overseas suppliers, buying commercial premises in other countries or simply paying overseas staff, there are more reasons than ever before why an Australian business might need to send money overseas.

A TorFX currency expert can help you pay your overseas invoice

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Save money on your personal or business international money transfer today. Fill in the form and you’ll be contacted by a foreign exchange expert to have an obligation-free discussion about your options. Our foreign exchange experts offer a best rate guarantee, are ASIC authorised and never charge transfer fees.

They can help you with all your needs including:

  • Buying property abroad
  • Emigrating
  • Regular overseas payments
  • Risk management
  • Forecasting

See exchange rate updates in real-time

Refreshing in: 60s | Mon, 26 Feb 08:51am GMT
USD AUD CAD EUR CNY GBP INR MXN PHP
1 USD = 1.0000 1.2756 Inverse: 0.7839 1.2646 Inverse: 0.7908 0.8133 Inverse: 1.2296 6.3526 Inverse: 0.1574 0.7149 Inverse: 1.3988 64.8990 Inverse: 0.0154 18.5799 Inverse: 0.0538 51.8001 Inverse: 0.0193
1 AUD = 0.7839 Inverse: 1.2756 1.0000 0.9914 Inverse: 1.0087 0.6375 Inverse: 1.5685 4.9800 Inverse: 0.2008 0.5604 Inverse: 1.7843 50.8764 Inverse: 0.0197 14.5654 Inverse: 0.0687 40.6077 Inverse: 0.0246
1 EUR = 1.2296 Inverse: 0.8133 1.5685 Inverse: 0.6375 1.5550 Inverse: 0.6431 1.0000 7.8112 Inverse: 0.1280 0.8790 Inverse: 1.1376 79.8001 Inverse: 0.0125 22.8459 Inverse: 0.0438 63.6936 Inverse: 0.0157
1 GBP = 1.3988 Inverse: 0.7149 1.7843 Inverse: 0.5604 1.7689 Inverse: 0.5653 1.1376 Inverse: 0.8790 8.8860 Inverse: 0.1125 1.0000 90.7803 Inverse: 0.0110 25.9895 Inverse: 0.0385 72.4576 Inverse: 0.0138

As an accounts payable officer, it’s your job to make sure those invoices are paid on time and in full. But did you know that by using an online money transfer company rather than your bank to send money overseas, you could provide a big boost to your business’s bottom line? Read on to find out how.

Why might an accounts payable officer need to send money overseas?

As the accounts payable officer, it’s your responsibility to ensure that all of the company’s bills are paid on time. This includes checking that invoice amounts are accurate and bills are paid in full, both for invoices issued from Australia and from overseas.

With this in mind, you might need to send money overseas to:

  • Purchase inventory or stock from an overseas supplier
  • Pay overseas legal fees
  • Pay for professional services for your business, for example accountancy or IT consultancy
  • Purchase an overseas commercial property
  • Pay overseas staff
  • Pay any other outstanding business debts

How can international money transfers help?

When sending money overseas, most businesses simply call on their usual bank to handle the transfer. This makes perfectly reasonable sense at first – after all, if you already have an account set up it’s a quick and convenient option – but could actually be costing your business a substantial amount of money.

Why? Because banks take more than their fair share of your money before sending it overseas. The next time you ask your bank to send an international transfer, take a closer look at the exchange rate they quote you – it’ll be a whole lot lower than the mid-market (or interbank) exchange rate you see quoted on financial news broadcasts.

This is because banks add a sizable margin on top of foreign currency before selling it on to you. For example, while your bank might get 0.74 US dollars (USD) for every 1 Australian dollar (AUD) when they purchase American currency, it will then sell the currency on to you at a rate of 0.71 USD for every 1 AUD. As a result, you get poor value for money and end up paying a whole lot more than you should.

However, there is a more affordable way to send money overseas. Recent years have seen the emergence of several online money transfer companies. These providers, including companies like OFX, CurrencyFair and WorldFirst, specialise in international transfers. Because they have smaller overheads and their margins are tighter, they can usually offer exchange rates that are much closer to the interbank rate.

Their transfer fees are also quite competitive, with some companies even waiving fees altogether on large transfer amounts. With this in mind, it’s essential that you compare a range of transfer providers to find the best deal before sending money overseas.

Case study: Finding the best exchange rate when sending money overseas

Bianca is the accounts payable officer for an Australian publishing company. She needs to send GBP£10,000 to the United Kingdom to pay an invoice received from a UK accounting firm.

In the past, Bianca has always sent the money overseas directly from the company’s normal business banking account with a “Big Four” bank. However, with the company in a transition phase and looking to cut costs wherever possible, Bianca is keen to find a better deal. She compares the cost of sending money overseas using her bank with the cost of sending the funds via an online transfer company to see which provides the best value for money.

As you can see in the table below, Bianca can save a massive $907.63 for the company simply by using an online transfer company instead of her bank. Even though the difference in exchange rates might seem relatively small on paper, once you calculate the total cost of the transaction (and include the transfer fee) it has a significant effect on the overall cost.

That’s why it’s essential to shop around before sending an international money transfer for your business.

BankOnline money transfer company
Exchange rate1 AUD = 0.5496 GBP1 AUD = 0.5786 GBP
Transfer fee$22$4
AUD needed to send GBP£10,000$18,195.05$17,287.42
Total savings-$925.63

How to compare and choose international transfer providers

There are several factors you need to consider when searching for the best international transfer provider to help you pay overseas invoices, including:

  • Exchange rates. The case study above shows just how important the exchange rate is to the total cost of a transfer. Look around for the company that regularly offers the best exchange rates for wherever you need to send money.
  • Transfer fees. The transaction fee charged by the transfer provider can also have a big impact on whether or not you get value for money. Compare fees between providers and remember that some companies won’t charge any fees if you’re sending a large transfer.
  • Supported currencies. Before choosing a provider, make sure it offers support for all the foreign currencies in which you need to send payments. Some companies will only support a handful of major currencies while others will allow you to transfer a much broader range.
  • Transfer time. It’s crucial that all company bills are paid on time, so make sure to check how long it will take for any money you send to arrive in your recipient’s bank account.
  • Recurring payments. Does the provider allow you to save time by setting up a recurring payment schedule to help you pay regular bills? If so, is there any additional fee attached?
  • Transfer options. Some companies allow you to place forward contracts, where you lock in an exchange rate now for a future transaction, or specify the exchange rate you want with a limit order. Both of these flexible transfer tools can be used to take advantage of even bigger savings for your business.
  • Customer support. If you ever need help with a transaction, will you be able to enjoy quick and easy access to customer support? Having a personal account manager you can contact for tailored advice and to handle any sensitive transactions could also be beneficial.

The next time you need to pay an overseas account for your business, make sure to compare your transfer options. The savings you find could make a huge difference to the cost of doing business.

Tim Falk

A freelance writer with a passion for the written word, Tim loves helping Australians find the right home loans and savings accounts. When he's not chained to a computer, Tim can usually be found exploring the great outdoors.

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TorFX International Money Transfers

TorFX guarantee to beat any competitor's exchange rate for a transaction. Conditions apply.
Send money overseas in 45 currencies. Once registered, you'll be assigned an Account Manager who can provide support and guidance.

Exclusive: WorldFirst International Money Transfers

Exclusive offer: $0 transfer fee and discounted exchange rates for your first trade.
A higher exchange rate applies to non-finder customers. Send money in more than 130 currencies.

FC Exchange International Money Transfers

FC Exchange can save you money with its Best Exchange Rate Guarantee. Conditions apply.
No transfer fee when transferring more than £10,000 or equivalent. Send money in over 130 currencies.

XE International Money Transfers

Enjoy fast, secure and fee-free international money transfers from global payments provider XE.

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