A Common Misconception
It is a modern reality that any business with an online presence has the potential to be an international business, regardless of its’ size.
Trading in foreign currency presents huge revenue opportunities but also challenges. As businesses grow, so do the risks, costs and uncertainties. Failing to properly manage your foreign exchange (FX) can have a detrimental impact on profit margins, cash flows, costed levels and external pricing.
Too often foreign exchange is wrongly perceived as a potential revenue stream rather than a budget to be set and protected.
Read more on the foreign exchange markets here.
What are the Options?
The foreign exchange market is the largest financial market in the world in terms of sheer volume, hosting approximately $5 trillion of daily trade. The digital revolution has enabled overseas transactions and cross-border opportunities that businesses are understandably keen to exploit. Customer expectations have evolved too.
Customers wants their payments in real time and to see the value of those payments in their own currency. Whether a global corporation or an importer of goods – international payments form a crucial part of your baseline operations.
Despite the volatility of currency value, most financial institutions offer customers a relatively static exchange rate. This antiquated method results in the hosting business absorbing the entirety of the risk and can see profit margins dwindle.
Rather than setting a budget for foreign exchange (which many see as a challenge), there are those who speculate and even hope to see a profit from their foreign exchange. This can be seen as gambling with company profits and have a negative impact on reputation.
A better Way
There are undeniable difficulties associated with setting a budget rate for your foreign exchange. Increasingly shrewd organisations are choosing dynamic, flexible solutions rather than swimming against the uncertainty of the foreign exchange markets, or worse, ‘gambling’ with company profits.
Your profits are derived from the commodities you buy and sell. Your foreign exchange forms part of your budget and enables your overseas transactions. Protecting your foreign exchange in turn protects profit margins and mitigates against the associated risks.
The foreign exchange market is arguably the least widely understood but taking a proactive approach and seeking expert guidance will help you seize new revenue opportunities whilst protecting your bottom line.
Central FX are here to help you do just that. Whether you are a dynamic eCommerce retailer looking to expand internationally, or a corporation looking to streamline and simplify foreign payments; choosing a knowledgeable partner helps future-proof your business and successfully navigate the foreign exchange markets.
Don’t speculate, take control of your foreign exchange.With the right support businesses can turn cumbersome processes into a competitive foreign exchange advantage.
Central FX offer bank beating rates but most importantly I know I will be called every day with live rates and that is absolutely vital for the margins on our business…
Get in touch with one of our dedicated foreign exchange specialists to find out how we can protect your bottom line.