Sending Money Overseas this Holiday Season? A Guide for Businesses

Last Updated: 05 Dec 2023

As the holiday season approaches, the spirit of giving and sharing extends beyond borders. For many, this is a time to send financial support or gifts to friends and families abroad. Businesses, too, find themselves transferring funds internationally, whether it's for year-end bonuses, payments to overseas partners, or other festive expenditures. This period, characterized by joy and generosity, brings with it the unique task of navigating the world of international money transfers.

Whether you're an online retailer looking to send money overseas or a business managing year-end financial obligations, here are some essential tips to make your cross-border money transfer smooth, efficient, and secure.

Why businesses may need to send money abroad from Canada?

During the holiday season, Canadian businesses may have specific needs for sending money abroad, often influenced by the unique demands and opportunities of this festive period. Here are some holiday-specific reasons:

Seasonal bonuses for overseas employees: Businesses often send end-of-year or holiday bonuses to their employees working abroad as a gesture of appreciation and holiday cheer.

Paying contractors or freelancers: Many companies hire additional seasonal workers or freelancers located overseas for holiday-specific projects and need to transfer payments internationally.

Settling year-end accounts with international suppliers: As the fiscal year ends, businesses may need to clear outstanding payments with international suppliers, especially those involved in providing holiday merchandise.

Funding holiday marketing campaigns in foreign markets: Companies may increase their marketing and advertising efforts in other countries during the holiday season, requiring funds to be sent abroad for these activities.

Managing increased inventory for holiday sales: Businesses might need to import additional inventory to meet the high demand during the holiday shopping season, necessitating international payments to suppliers.

Donations and corporate social responsibility initiatives: The holiday season often inspires businesses to make charitable donations or engage in social responsibility projects abroad.

Currency exchange for holiday sales: Businesses dealing with increased foreign transactions during the holidays might engage in currency exchange services to optimize their cash flow.

Holiday travel expenses for staff: Companies might cover travel expenses for staff traveling internationally during the holidays, either for business trips or as a holiday perk.

Challenges of sending money internationally during the holiday season

Highly volatile exchange rates

The holiday season can bring volatility in the foreign exchange market. This unpredictability can affect the value of the currency being sent, potentially leading to higher costs or lower recipient amounts.

Higher transaction volumes

The holiday season often sees a spike in international money transfers, which can lead to processing delays as financial institutions and transfer services handle increased volumes.

Increased fees

Some services start charging higher fees during the holiday season due to increased demand, impacting the cost-effectiveness of sending money abroad.

Fraud and security risks

The holiday season can see a rise in fraudulent activities and scams. Senders need to be extra cautious to ensure their money is sent securely and to the intended recipient.

Bank holidays and non-working days

The presence of multiple public holidays around the festive season and New Year can affect the speed of transactions. Banks and financial institutions in different countries may be closed, leading to longer processing times.

How can MTFX help businesses send money overseas during the holiday season

Competitive exchange rates

MTFX often offers more competitive exchange rates compared to traditional banks. This can be especially beneficial during the holiday season when currency volatility might be higher.

Lower transaction fees

MTFX charges lower transaction fees than traditional banks, which can lead to significant cost savings for businesses, especially when sending large amounts or making multiple transactions.

Faster transfer speeds

MTFX's infrastructure is built on innovative technology that enables efficient processing leading to quicker transfer times, a crucial feature during the time-sensitive holiday season.

Hedging tools and risk management

MTFX provides tools such as forward contracts, which allow businesses to lock in exchange rates for future transactions. This can protect against currency fluctuations common during the holiday season.

24/7 customer support

They typically offer robust customer support, which can be invaluable for businesses needing assistance with transactions during the holiday period, especially when dealing with different time zones.

Wide range of currencies

MTFX can handle transactions in a large number of currencies and to numerous countries, making it a versatile choice for businesses with a global footprint.

Partner with MTFX to streamline international payments

Sending money abroad during the holiday season can be challenging, but with the right planning and a reliable service like MTFX, it can be made easier. Whether you're a business handling year-end tasks or an individual sending gifts to loved ones, choosing the right service can help you manage costs and ensure timely, secure transfers. This holiday season, focus on what's important – connecting with others, no matter where they are in the world. Happy holidays!

Create your MTFX business account and start sending money internationally within minutes.