Running an international business comes with a lot of challenges and overcoming these barriers is the real task. From handling global money transfers to dealing with unexpected exchange rate fluctuations, there is always something that can tear off your financial planning into pieces.
When businesses send money online, they often want to make sure that they are reducing the costs while ensuring smooth and secure transactions.
Whether you are an e-commerce entrepreneur shipping globally, a freelancer working with international clients or a company managing multiple offices across borders, saving money isn’t just about cutting down the costs, it’s all about making smarter decisions.
So, how can you make sure that your international business runs smoothly while keeping the costs under control?
In this blog, let’s break it down with 5 best and practical money-saving tips for international businesses.
Send money online: Top 5 Money-Saving Tips for International Businesses
Finding the right method to send money online is the key to keeping the business costs down.
Let’s discuss the top 5 money-saving tips to help international businesses cut down on transaction fees and boost financial efficiency when sending money online.
Choose affordable online fund transfer services
Traditional banking fees for international transactions are much higher than online money transfers.
If you are still using wire transfers, you might be losing a significant amount of your hard-earned revenue to hidden charges. Instead of that try to consider using online platforms that specialize in global money transfers.
Fintech platforms like EFIcyent offer lower fees and no extra hidden charges compared to the traditional banks.
By taking this smart change from traditional banking to online money transfer services, you can send money online at a fraction of the cost, which can later add up to hefty savings in the long run.
It is always necessary to compare multiple platforms before making a transfer. Even a slight difference in platform fees can have a big impact on your bottom line.
Tap into remote work and outsourcing
The pandemic had proved one thing, that remote work isn’t just possible but also profitable. Hiring local talent in high-cost regions can be expensive, so why not consider outsourcing tasks to professionals in countries with lower costs?
Platforms like Upwork, Fiverr and all allow businesses to hire skilled professionals from around the world at competitive rates.
You can also form a remote team and save on office space, travel expenses and operational costs as well.
If you need a dedicated team but don’t wish to face the hassle of setting up a company abroad, always consider “Employer of Record” services. They make international hiring easy by handling the paperwork for you.
Make your tax plan more effective
Did you know that where you register your business can considerably impact your tax burden? Many international businesses overpay taxes simply because they haven’t explored better tax structures.
If you are operating your business across multiple countries, it is always best to consult a tax advisor who understands international business taxation.
Countries like Singapore, Ireland and the UAE offer business-friendly tax policies that might benefit your business. Structuring your business wisely can also help you legally reduce tax debts and maximize profits.
Keeping track of your tax agreements between countries where you do business can help you avoid the double taxation on income earned in different jurisdictions.
Save More with Bulk Orders & Negotiations
The repeated mistake that most businesses overlook is on how to do the negotiation with your business suppliers.
If you are regularly purchasing goods or software licenses, chances are high that you mostly overpay because you haven’t negotiated better rates with your suppliers.
Suppliers often provide discounts for bulk orders or long-term contracts. If you’re sourcing raw materials or manufacturing products internationally, consider merging shipments to reduce logistics costs.
Grouping all your orders can also help you get better rates on global money transfers when paying suppliers in bulk instead of multiple smaller payments.
Also, you must build an effective connection with your suppliers. Long-term business partnerships often lead to better deals, exclusive discounts and priority service.
Manage risks from changing exchange rates
The global economy is unpredictable and the exchange rates can vary wildly. If you’re sending or receiving payments internationally, these changes can eat up your profits.
The one way to protect yourself from this situation is by using forward contracts or multi-currency accounts.
Global money transfer services like EFIcyent allow you to hold multiple currencies, giving you control over when and how you should convert your funds. This means you can send money online at the most favorable exchange rates instead of getting caught off guard by the sudden shifts in market price.
Keeping an eye on the latest foreign exchange trends and using automated alerts to monitor rate changes can help you manage the risk from changing exchange rates. Locking in a favorable exchange rate can save your business thousands over time.
Conclusion
Running an international business is exciting, but it also comes with many financial challenges. The key to saving money isn’t just about cutting costs but it’s about being strategic with how you handle global money transfers, taxes and overall expenses of your business.
One of the most effective ways to save money in an international business is by using online money transfer solutions. Therefore, the ability to make quick, secure and cost-effective transfers across currencies helps these global transactions. This allows you to focus on scaling your business rather than worrying about the fees and delays.
By using online money transfer solutions and managing currency risks, you can keep your business financially healthy and competitive in the global market.