The Secret of Investors: Why They Choose Money Transfer Companies Over Banks
Yael, the CEO of a promising tech startup, was on the verge of one of the most important deals of her career. She was raising funds from investors to take her company to the next level, but as with all business dealings, it wasn’t simple.
Avi, one of the potential investors, was an Israeli who believed in her vision. His condition? The money needed to be available in the U.S. to show seriousness to the other investors. On the other hand, Avi wasn’t willing to transfer his funds “into thin air” before the contract was signed.
Understanding the complexity, Yael turned to an international money transfer service. Avi transferred his funds to a dedicated account in the U.S., giving confidence to both Yael and the other investors that the deal was legitimate and moving forward. Thanks to this solution, the deal closed quickly, and Yael secured the additional funding she needed without delays.
The Deal Process: Where Banks Fall Short
Whether it’s investors like Avi or fundraising companies, business transactions are almost always a multi-step process. For example:
- In the early stages, the fundraising company wants to ensure that the investor is serious and has the required funds available.
- Later, the investor wants to see progress or reach certain milestones before committing fully.
When negotiating with multiple investors, the company needs definitive proof that everyone has contributed their share so that the group as a whole can move forward confidently.
But what happens when one side doesn’t fully trust the other? That’s where problems arise. Companies fear wasting time and resources on someone who might not deliver, while investors hesitate to transfer money until they are certain the deal is progressing as expected.
The Solution: Fast and Secure Money Transfers
To resolve this conflict, international money transfer services provide the perfect solution:
- Funds are transferred to a dedicated account in the U.S. and held securely until the investor authorizes their release.
- The company can verify the availability of funds, ensuring the investor’s commitment.
- The investor retains full control over their money, eliminating the risk of premature transfers.
Another Example: Danny and the Multi-Stage Deal
Danny, a real estate entrepreneur, wanted to invest $150,000 in a residential project in the U.S. The fundraising company required proof of his financial readiness, but the deal was structured in stages. Danny wasn’t comfortable transferring the full amount before the company achieved specific milestones.
The solution was simple: Danny used an international money transfer service to ensure that the funds were available in the U.S. but remained under his control. The company received confirmation of the funds’ availability, and Danny was assured that the money would only be transferred at the appropriate time.
Why It Matters
Both companies and investors aim to save time and build mutual trust. International money transfer services offer:
- Confidence for both parties.
- Prevention of unnecessary delays caused by misunderstandings or mistrust.
- A streamlined, transparent process that facilitates smoother deals.
Why Not the Bank?
Banks often operate with lengthy procedures and high fees. Transferring funds through banks requires extensive documentation and sometimes unexpected delays, which can hinder deal progress. In contrast, money transfer services provide flexibility, speed, and full control over funds.
Our Takeaway
If you’re an investor or a company looking to simplify your process, remember Yael, Avi, and Danny. Each had unique needs, and each found a tailored solution.
We’re here to provide services that understand you—and your deal.
Because sometimes, a good deal starts with money already in the right place.
Studio