Business money transfers

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

For domestic payments within the UK, this can usually be done through your business bank using standard online banking or a mobile app. You can set up one-off payments, schedule future transfers, and manage direct debits and standing orders with ease.

If your business trades internationally, you may also need to send or receive payments in foreign currencies like dollars or euros. While you can do this through your bank, using a specialist money transfer provider is often cheaper and can help reduce the risks associated with currency exchange.

The right money transfer option depends on where the payment is going, how much you're sending, and how quickly it needs to arrive. Here's a breakdown of the main types:

Domestic money transfers (UK)

Most UK business transfers can be handled easily through your online banking or app. But be aware of transfer limits.

There are three main ways to send money within the UK:

• Faster Payment: Typically instant and always within two hours. Ideal for smaller, time-sensitive transfers. Some banks charge a fee, which may be higher than for slower methods.

• Bacs: Commonly used for payroll and direct debits, this method takes about three working days.

• CHAPS (Clearing House Automated Payment System): A same-day service designed for high-value transactions. Best for large business payments, though it usually comes with a fee of around £25 per transaction.

Note: Both Faster Payment and Bacs are expected to be phased out and replaced by the New Payment Architecture (NPA) system in the coming years.

International money transfers

You can send international business payments through your bank, but using a specialist money transfer provider is often faster and more cost-effective, especially if you're dealing with foreign currency.

Here are the main options:

• SWIFT / SEPA transfers: Banks can send credit transfers across the Single Euro Payments Area (SEPA) for amounts up to €1 billion. These typically take one working day. For other countries, banks use the global SWIFT network, where processing fees and times are higher and longer.

• Direct debits: For regular payments to European suppliers, your bank can set up international direct debits. These usually come with fees and conversion charges but could help you negotiate better terms with vendors.

• Foreign currency business accounts: These accounts let you hold, send, and receive money in different currencies, avoiding repeated currency conversion fees. For example, a Revolut Business account supports transfers in over 25 currencies.

• International bank transfers: Available for payments to most countries. Costs and processing times vary by bank, depending on exchange rates, fees, and transfer speed.

• Specialist international money transfer services: Providers like Wise or WorldFirst typically offer better exchange rates and lower fees than banks. They also offer tools to manage currency risk, such as locking in exchange rates to protect against fluctuations.

Fluctuating exchange rates add risk to paying or receiving foreign currency. For example, if the pound-to-euro rate drops from £1 = €1.14 to £1 = €1, a €10,000 bill could cost your business £1,228.07 more.

Specialist transfer providers offer tools to manage this risk. Forward contracts let you lock in today’s exchange rate for future payments — sometimes up to two years — providing certainty but no benefit if rates improve. Alternatively, limit orders allow you to set a target rate, so your transfer happens only when the rate hits your chosen level, letting you benefit from favourable shifts while limiting downside risk.

Whether sending money domestically or internationally, remember to factor in fees and charges when budgeting your transfers.