MAKE THE MOST OUT OF FOREX MARKET MOVEMENTS

Business Foreign Exchange Solutions

  • business fx solutions

As the world becomes more accessible and companies actively focus on developing international markets as do the solutions that are offered by specialist currency providers who offer Business FX solutions.

Following the development of the market over the last few decades’ deliverable foreign exchanges for businesses has become a huge growth market where banks still dominate but slowly but surely losing ground.

Whilst competitively and pricing due to their colossal overheads has far from helped their plight lack of solutions and development runs a close second with few offering platforms and services with the diversity needed by global businesses whose opportunities benefit from greater levels of service, designated points of contact and transparent international transfer solutions.

International payments importers and exporters

Foreign exchange can affect importers and exporters dramatically and during volatile periods this can be further exaggerated as previously scheduled shipments or unsettled invoices can fall fowl of sharp rate moments quickly eroding any profit.

Importers

Importers are constantly faced with the hurdle of protecting their budget between the moment contracts or sales are agreed to the moment that they are expected to settle their supplier’s invoices.

During a 30-60-day invoice window, there can be a great level of movement in rates which often will fall below a rate which an importer has initially budgeted for. This, therefore, affects the net income directly, especially when the currency being purchased strengthens significantly or unexpected against the base currency.

Exporters

Exporters face different challenges when managing their currency exposure. This can be further compounded when goods are being shipped overseas a process which can take up to a few months’ depending on location.

Therefore, if delivery or payment dates are less than immediate this opens the exporter to uncertainty in relation to rates. This can have implications on the profitability of the business as without consultancy the delivery delay combined with rate movement can spell a loss of profit.

Specialist currency providers can work proactively and implement a number of FX contracts which will both eliminate risk and maximise profit on shipments for exporters. Importers can also benefit from pre-agreeing pricing with suppliers and fixing contracts to protect their profit and ensure their business remains unaffected by adverse rate fluctuations.

Receiving international payments

Although you may have to identify where you are receiving international payments from typically a broker will be able to assist. Third party business payments can normally be approved by providing relevant supporting documentation.  This will typically be a copy of invoice and potentially company certificates or ID.

Many foreign exchange brokers will allow you to facilitate your business FX and receive payment from international sources ensuring you can maximise profitability from the markets you sell to and control and manage the business FX involved. This in turn allows your trading partners to settle in their local currency and avoid heavy bank charges and uncompetitive rates offered by some banks.

Mass payments

More specific to larger company’s mass payments or multiple payments platforms are ideal for those making more than 10-25 payments in one go. Typically, these platforms will be most beneficial to travel companies, international payroll providers, royalty companies and wealth funds.

The platforms mentioned allow companies to upload spreadsheets in order to process their payments. They can typically be in an Excel-style format in a multitude of currencies with multiple beneficiaries and allow 500 or so payments to be made in just a few steps.

Normal trading prices and fees apply however the work involved is drastically cut. In many cases, these platforms can have multiple levels of approval rights allowing the clerk to upload but not approve payments and the director to approve and upload if desired.

E-tailers

With the growth of online business, a handful of currency providers have devised platforms in order for e-tailers to convert their collected foreign currency back to their desired currency. Setting up an account is relatively straightforward and savings compared to payment gateways can be significant. The funds can be received in segregated currency accounts and platforms are compatible with many of the large online marketplaces.

The funds can be received in segregated currency accounts and platforms are compatible with many of the large online marketplaces Amazon, Cdiscount, etc.  Online business owners can just input their segregated account details into their platform and receive payments of all sizes in multiple currency accounts.

If you or your financial director is looking for business FX guidance, please do not hesitate to email info@forexnewsshop.com.

By | 2018-04-24T18:41:04+00:00 July 31st, 2016|Forex Guides|0 Comments

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Forex News Shop provides currency-specific FX news, political updates affecting currency and insight to where foreign exchange trends may go.

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