Avoid costly bank charges and use a dedicated money transfer provider to get a better rate and fewer fees when paying business lease costs.
There are many costs associated with leasing commercial (or virtual) premises. These costs are additional to the rent and can be quite significant, especially if they are ongoing and increase during the lease. If your business needs to pay overseas lease costs, it’s even more expensive.
Using a dedicated international money transfer service to pay international business lease costs will save you more money than using your local bank. Use our free international money transfer calculator below to find one suitable for your business. Enter your transfer amount and destination, and if you want to read more about a product, click “More”, or click “Go to Site” to source a quote.
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Benefits of choosing a dedicated money transfer provider to pay business lease costs
If you have used your bank to make money transfers for years, why change your payment method now?
Most banks and sites like PayPal will charge their customers a fixed percentage fee on international money transfers for using their services, and this “processing fee” can be up to 5% for exchanging or transferring money. In addition, you are also facing less competitive exchange rates and cross-border currency conversion costs, so if you are a business that deals in multiple currencies you’re losing out.
Here are some reasons why your business should opt for online money transfers to pay business lease costs:
- Competitive exchange rates. Money transfer companies often offer much more competitive transfer rates compared to banks, saving you money.
- Lower fixed fees (or no fees at all!). Many dedicated money service providers allow you to send money overseas without fees.
- Flexible and fast. Money transfer methods are desktop-, mobile- and tablet-ready, meaning you can transfer money on the go as long as there is internet, making it a very convenient option for a business.
- Secure data. Many online transfer companies provide a level of data security to rival your bank's. Provided you do your research, you can feel confident that your data is in safe hands. Some signals that your money transfer company takes data security seriously include a high volume of transfers, Secure Socket Layer encryption at a website level, encryption of payment and transaction data and a dedicated in-house fraud detection team.
- Regulated. Money transfer providers are regulated in the same way that banks and other financial institutions are, so your money and bank details are safe and secure.
- Merchant software integration. Some online money providers integrate very well with accounting software like Xero, which can help you keep track of your invoices.
Case study: Tiffany pays business lease costs in New York
Tiffany lives in Sydney, Australia and runs an online ecommerce site. She has just taken out a new business lease in New York, as she has expanded the business and has her business partner working from the new office in the United States. Tiffany needs to pay her landlord US$1,000 in rent per week.
Tiffany does some research on the best way to pay her rental costs. She considers using her local bank but decides to compare the costs against a dedicated online money transfer provider. She makes a table to compare the costs and realises that by using the money transfer provider she will save money on fees and also receive a better exchange rate.
| Bank | Money transfer provider | |
|---|---|---|
| Transfer amount | USD$1000 | USD$1000 |
| Transfer fee | AUD$22 | AUD$8.89 |
| Exchange rate | AUD$1 = USD$0.7479 | AUD$1 = USD$0.78760 |
| AUD needed to send USD$1000 (incl. fee) | AUD$1,359.07 | AUD$1,278.57 |
| Money saved | +AUD$80.50 |
By using a money transfer provider, Tiffany can save up to AUD$80.50 each week when she transfers her rental payments to her landlord in New York. Over the entire year, this could add up to a saving of AUD$4,186 for Tiffany, simply by comparing her options.
*Rates and fees quoted in the table are correct on 10 August 2017. Always source a quote for current rates and fees.
Additional costs associated with business leases
The biggest cost of a lease is likely to be ongoing rental payments. Paying rent is part of the lease, but paying extra fees on top of paying your rent can definitely be avoided. Global businesses that need to send money overseas are better off going with an international money transfer service. They provide better exchange rates and lower fees than your average bank or mainstream company like PayPal.
However the costs don’t stop with the rent. It’s important to be aware of any expenses that could be, and often are, added onto your business lease. Some of the possible additional costs of your business lease include:
- Operating expenses or outgoings
- Insurance costs
- Legal costs
- Security bond cost
- Fit-out and condition of premises costs
- Refurbishment costs
- Marketing and promotional funds
As we’ve seen in the above case study, using your bank each time you need to pay one of these additional costs means you’ll be paying more in unnecessary fees. You’ll also be receiving a less competitive exchange rate compared to using a dedicated money transfer service.
Got it – what do I do now?
As we’ve seen with the case study above, it pays to shop around. Now it’s time to compare your options. Use our table above to compare money transfer providers. When you’ve chosen a few you think look suitable for your needs, click ‘Go to Site’ to source personal, up-to-date quotes.
