Swoop offers funding and savings solutions to small businesses – and international transactions offer the biggest potential saving for our customers, an average of £6,000 per annum.
As a small business, you may well trust your bank to provide all your foreign exchange transactions without question – and without being aware how expensive they can be. But times are changing, and here at Swoop, we work hard to bring you the smartest and best solutions for managing your money and providers such as TransferWise are making our job easy.
What is TransferWise?
TransferWise simply allows you to spend, send, and receive multiple currencies using the mid-market exchange rate (the same you’d see on Google) in over 40 currencies and to over 50 countries, thus substantially reducing the cost of making international transactions – and thereby increasing your business’ profitability. TransferWise achieves this as they don’t use the traditional SWIFT network – they have built their own local banking network meaning money doesn’t actually cross-borders – and that’s how they cut down costs and improve delivery times.
Independent research showed that through TransferWise it is possible to save up to 19x on your international foreign exchange transfers in comparison to PayPal’s costs and transaction fees – TransferWise like to state they’re allowing your company to be able to ‘conduct business without borders’.
Another functional feature TransferWise offers is batch payments. This basically allows you to handle up to 1,000 payments at one time, making it great for paying international recurring invoices or handling payroll for your employees.
As an example, Swoop recently helped one client with cost savings which identified that they could save almost £6,000 a year in FX transaction fees. Using Swoop’s smart comparison algorithm, we matched the exact FX spot rates and fees on the dates the payments were made, and compared these with what TransferWise would have cost instead – the result being a substantial cost saving which could be reinvested back into the business.
Who should use TransferWise?
Swoop’s trusted partner is a great option for small businesses and entrepreneurs currently processing international transactions with their banks, or who are unhappy with the substantial transaction fees their providers are charging. Most international transfer providers (including banks) mark up the exchange rate as well as charging a fee on top of that, so the price a small business pays for FX transactions is likely to be way higher than it should be.
It takes just three quick and simple steps to sign up with TransferWise – and it’s free to set up your business account. Once you’re set up you can compare real time fees against the banks and providers, and instantly send money abroad in your chosen currency with the lowest costs possible.
Our customers told us some of the best things about TransferWise are:
- Xero integration: connect with Xero.
- Batch payments: make multiple payments in one go with a .csv file upload – one funding, multiple payments.
- Open API: automate payments and workflows.
- Monthly statements: download statements for every balance you hold.
- Delivery estimator: smart predictions on how long transfers will take (90% of calculations
exact to within 2 hours).
So, if your business is looking to reduce its costs on FX, or seeking other types of business cost savings, the team here at Swoop are happy to assist.