Like most small business owners, you probably transfer funds on a regular basis.
Whether it’s from your business bank account to your personal account or from your business account to outside parties like vendors and suppliers, there are a number of ways to easily transfer your finances.
Here are just a few:
Wire Transfer
Wire transfers are one of the most common forms of money transfers and are used by businesses both large and small.
Also referred to as an electronic funds transfer, wire transfers allow your small business to transfer funds to another business, an individual, or another bank account.
For example, if you want to pay a vendor for their products and services, you can request a wire transfer from your bank to deposit funds directly into their account.
Or, if you need to transfer funds from your personal account to your small business bank account, you can also use a wire transfer.
Keep in mind that if you’re transferring money from one bank account to an account at another bank, you may have to pay transfer fees at your bank, the other bank, or both.
Online Money Transfers
Although wire transfers are still being used today, they are quickly being replaced by online money transfers. An online money transfer works much the same way as a wire transfer, except you can handle the entire transfer yourself by logging into your bank’s website.
Whether you need to transfer money between business accounts or to an outside bank, online money transfers make the process a breeze.
When it comes to transferring money internationally or to individuals without traditional bank accounts, a standard wire transfer or money order may be necessary.
Mobile Money Transfers
As a relatively new form of mobile banking, mobile money transfers are gaining popularity, especially in the small business world.
As the following article looks at, from depositing funds to transferring money to individuals and other businesses, mobile money transfers allow you to complete financial transactions from the comfort of your smart phone.
Mobile banks offer smart phone apps that make it possible to handle all of your finances from your mobile device.
In addition, most mobile banks also offer debit cards, which work in combination with the mobile banking app. This allows your business to make regular purchases and withdraw money from ATMs.
Bank Drafts
Also known as a cashier’s check, bank drafts are a good option when your business is transferring a large amount of money.
For example, if you’re buying real estate for the purposes of expanding your small business or if you’re paying a significant amount of money to a new vendor, then you’d use a bank draft.
With a bank draft, your bank writes a guaranteed check that your business uses to pay someone else.
Bank drafts are only used when money is changing hands. In other words, you wouldn’t use a bank draft when transferring money from your small business account to your own personal bank account.
The next time your small business needs to transfer funds, keep in mind the options mentioned above.
About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including banking and small business.