Whether you regularly deal internationally or not, in today’s business climate it is almost impossible to avoid international payments. And yet if you do not understand foreign exchange rates it can be easy to lose money along the way, eating into profits and potentially turning into an expensive gamble.
Should you keep your money in sterling and pay foreign exchange fees on each transaction or keep it abroad and risk losing value?
The currency markets are fast moving and incredibly sensitive to international events. Time can be of the essence when making currency transfers to return non-sterling dividends to avoid losing out. A small shift can quickly snowball into a huge loss.
If you trade abroad regularly, it’s essential to have an international portfolio so that at least a portion of your investments are in a more useful currency. Specialist foreign exchange services have a wide array of tools at their disposal to protect you against currency fluctuations and to allow you to make the most of it when the market is rising in your favour.
For items such as shifting operations and employees overseas or purchasing property it is possible to access services such as exchange rate fixing which allows you to plan up to two years ahead and know exactly what a transfer will cost at the time it is made. This can help manage and tame your international cash flow!
Are you ready to take the next step in exploring the potential for your business? Then contact us for a chat.
Article by: Paul Strachan