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Moving money between bank accounts should be simple, but as a small business owner, you know it’s rarely that easy. Whether you’re paying vendors, covering payroll, or just shuffling funds to optimize cash flow, bank transfers can feel like navigating a financial obstacle course. Fees, delays, and security concerns? Yep, they all come into play. But don’t worry, we’ll break it down, so you can move money smarter, not harder.
Why business bank transfers matter
If you think transferring funds is just another routine task, think again. According to the Federal Reserve, over 200 million wire transfers are made in the U.S. every year, amounting to more than $900 trillion moving between businesses and banks. That’s a lot of money in motion!
For small businesses, efficient bank transfers mean:
- Paying vendors on time and maintaining strong relationships
- Keeping payroll smooth (because happy employees = happy business)
- Avoiding unnecessary fees that eat into your margins
- Keeping cash flow optimized so you’re never caught off guard
Ways to transfer funds between banks
Not all transfers are created equal. Here are the most common ways to move money from one bank to another, along with the pros and cons of each:
ACH transfers (Automated Clearing House)
Best for: Routine payments like payroll, vendor invoices, and recurring expenses.
ACH transfers are the workhorse of business banking. They’re typically low-cost (or even free), but they can take 1-3 business days to process. If you’re paying vendors, make sure you factor in the delay.
Pro tip: Some banks charge fees for outgoing ACH transfers, so always check before hitting “send.” With Forwardly, you can pay vendors via same-day-ACH transfers at no cost, no waiting around for funds to clear.
Wire Transfers
Best for: Large, urgent transactions.
Wire transfers move money on the same day, which is great if you need to make a time-sensitive payment. The downside? Fees can be steep, typically $15 to $50 per transfer, depending on the bank.
Pro tip: Use wire transfers only when speed is more important than cost. For day-to-day payments, ACH or real-time payment options are often better choices.
Real-time payments (RTP)
Best for: Instant business payments with no delays.
Real-time payments (RTP) are the gold standard for modern businesses. They process 24/7/365 and settle instantly, making them perfect for paying vendors, contractors, or moving money between accounts when cash flow is tight.
Did You Know? Forwardly offers instant bill payments using RTP and Fednow Service, so you can move money without the usual wait times.
Bank-to-bank transfers
Best for: Moving funds between your own accounts.
If you have multiple business accounts at different banks, most banks allow direct transfers between them. This is typically free but can take 1-2 business days to process.
Pro tip: Always check for transfer limits, some banks cap how much you can move per day.
Checks deposits
Best for: When the recipient doesn’t accept digital payments.
Yes, checks still exist! While they’re not the fastest option, they can be useful when electronic transfers aren’t available. Just be mindful of check clearing times and high costs, which can take several business days.
Things to watch out for when transferring funds
No one likes surprises, especially when it comes to money. Here are a few common pitfalls to avoid:
- Transfer fees: Some banks charge for outgoing transfers, especially wires. Always check before moving large sums.
- Processing delays: If you’re on a tight deadline, avoid methods that take several business days.
- Security risks: Always verify recipient details to avoid fraud. A single typo in an account number can send money into the void.
- Cash flow gaps: If payments are delayed, it can leave your business in a bind. That’s why real-time payments are a life-saver.
How Forwardly makes transfers easier
Traditional bank transfers aren’t designed with small businesses in mind. That’s why Forwardly offers:
- Same-day ACH transfers & RTP payments so you don’t have to wait days for money to move.
- A unique 4-way sync with accounting tools to keep everything organized.
- No monthly subscription fees and no hidden fees, because surprise charges are the worst.
Transferring funds between banks doesn’t have to be a headache. Whether you choose ACH, wire transfers, or real-time payments, the key is knowing when to use which method based on speed, cost, and reliability. And if you want to make things even easier, solutions like Forwardly can help streamline the process and keep your cash flow moving smoothly.
Now go forth and move that money, wisely!
