Our best business money transfers

A business money transfer is the process of sending money, either to another company account or to a third party such as a supplier. 

Domestic transfers to UK accounts can usually be done simply via standard business banking. You can often make one-off transfers, schedule future-dated payments, and manage direct debits and standing orders online or via your banking app.

Businesses that trade internationally may also need to pay or be paid in foreign currency such as dollars or euros. This can be done via your business bank, but – as for consumers – international business money transfers are usually cheaper with a specialist money transfer company that can also help you mitigate the risks involved in foreign currency exchange.

Here are some types of money transfers to help you decide what's right for your business:

Domestic money transfers

You can generally organise a business bank transfer within the UK via your online banking service or app. However, there may be limits on the amount you can transfer online. 

At Barclays, for example, the limit is £250,000 per transaction for transfers between your own accounts. And for third-party payments and standing orders, the limit is £50,000. 

Depending on how much and how quickly you need your transfer to go through, there are three main ways to do domestic bank transfers:

• The Faster Payment Service – with this service, the transfer is often instant and should take no more than two hours. You may have to pay a transaction fee, which will often be higher than the charge for a slower service

• The BACS payment system – this service takes three days and is often used for direct debits and salary payments. It’s usually a cheaper option. NatWest, for example, charges 18p per transaction for automated BACS payments and 35p for other automated payments

• The CHAPS system – this same-day electronic transfer system is designed for high-value business-to-business transactions within the UK. The best choice for large transfers, it generally costs around £25 per transaction

Both the Faster Payment Service and BACS are due to be replaced with the New Payment Architecture (NPA) system at some point. 

International money transfers

You can organise international business money transfers via your bank, but it’s often more cost effective to use a specialist service.

The main options are:

• The SWIFT payment system – your bank can organise credit transfers within the single European payment area (SEPA) for amounts of up to €1bn. SEPA transfers are not cheap but should arrive on the same day if you send the money by 2pm 

• Direct debits – for regular payments to European companies, your bank can also set up direct debits, which mean paying a fee as well as a foreign currency conversion charge but may allow you to negotiate better payment terms with suppliers

• Foreign currency business bank accounts – these allow you to send and receive money transfers from other countries, without the need for foreign currency exchange. A Revolut Business account, for example, enables you to send money in more than 25 different currencies

• International bank transfers – these can be used to make payments to most countries in the world. The cost and timeframe involved will depend on your bank’s charges, exchange rate, and processing terms 

• International money transfers – a more streamlined and generally more cost-effective alternative to international bank transfers, these are offered by specialist money transfer companies that tend to offer more competitive exchange rates, as well as ways to protect your business should exchange rates change. You can, for example, fix your exchange rate for a set period to avoid a sudden spike in costs.

Fluctuating exchange rates mean that paying and/or being paid in a foreign currency adds an extra element of risk to running a business. If, for example, the pound-to-euro exchange rate moves from £1 = €1.14 to £1 = €1, the cost to a UK business of paying a €10,000 bill will rise from around £8,750 to £10,000 – a difference of £1,250. 

Specialist money transfer companies can help you to protect your business from the risk of exchange rates moving against you using forward contracts, which allow you to set the exchange rate for a planned transfer or transfers at the current rate – sometimes for up to two years. The downside, however, is that you cannot benefit should the rate move in your favour. 

Some companies therefore prefer to use limit orders that set a limit at which the funds are exchanged, for example if the exchange rate falls from £1 = €1.14 to £1 = €1.10, meaning they can take advantage of favourable movements while mitigating their risk should rates go the other way.

Whether you need to do domestic or international transfers, it’s also important to budget for underlying costs such as the fees and charges involved.