The best way to transfer money from the UK to Bangladesh
In the past, there weren’t many options for sending money from the UK to Bangladesh, or any other international destination. Businesses had to rely on traditional banks, which could inflate exchange rates, hike up fees, take their time on completing transactions and hide additional costs.
Some businesses still use old-fashioned wire transfers to send their money abroad. But for those who want to streamline their finances and cut down on unnecessary fees, there are other options that can take the hassle (and expense) out of cross-border payments.
Why a UK business might need to send money to Bangladesh
Bangladesh is an important source of trade for the UK. In 2021, annual trade between the two countries totalled almost £3 billion.
In terms of exports, Bangladesh specialises in IT, electronics, clothes, produce and more. Many UK businesses have suppliers based in Bangladesh whom they need to pay on a regular basis.
Other UK companies have team members and customers based in Bangladesh, and will therefore need to pay staff salaries, and accept payment from customers in the local Bangladeshi currency, which is known as the taka (although interestingly, the word ‘taka’ can be used in Bangla to refer to any money, currency or notes).
Tips for sending funds to Bangladesh
When hunting for the best money transfer deal, don’t just look at the stated transaction fees. Check the exchange rate too. If it’s not readily available, ask yourself why the bank or money transfer service might be hiding it.
Always ensure your money is kept safe. Look for a service which is authorised by the Financial Conduct Authority (FCA), and will therefore keep your money separate from their own funds.
If you are paying a supplier, check whether they need a deposit or a guarantee that the sale will go through. If so, you may need to use an escrow service, which holds your money until you receive the goods to ensure both parties are protected. Other suppliers may prefer to use a sourcing agency or letter of credit.
Consider whether you need protection if something goes wrong. Paying in cash or wiring funds in advance may mean there’s little you can do if you don’t receive the goods that you ordered.
Don’t forget to assess the speed of different money transfer services when transferring payments to Bangladesh. Delays in payment can cause supply-chain bottlenecks or lead to disgruntled employees.
The cheapest and most secure way to send money to Bangladesh
Airwallex charges you 60% less than high street banks when converting pound sterling to Bangladeshi Taka. That’s just 1% above the standard interbank exchange rate. Your money will arrive in 1-3 business days, and will be fully secured.
There are many other benefits to an Airwallex account, including borderless debit cards which allow you to spend in multiple currencies without transaction fees, and Xero integration, enabling you to keep track of your incomings and outgoings automatically.
Which option is right for you?
There’s no longer any need to use outdated, inefficient financial systems when moving money across borders.
Modern multi-currency accounts like Airwallex offer the smartest way to do international business, saving you money on transfer and exchange fees and improving your profit margins.
If you’re looking to streamline your finances and expand your business into new markets, sign up for a free Airwallex account today, or click below to view a 3-minute demo.
Related article: The best way to transfer money from the UK to the US
Tilly manages the content strategy for Airwallex. She specialises in content that supports businesses in their growth trajectory.
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