International trade can be very difficult for any small to mid-sized businesses,but doing business at an international level can also be the key to success for many organisations. When trading internationally, it's vital that businesses are able to keep control of costs. These costs can be incurred for a number of reasons, including purchasing goods, services and job talent from overseas. The situation can be made significantly more challenging for SMEs by the fact that doing business with partners overseas usually means sending and/or receiving payments where exchanging currencies comes into play. As a business, this introduces exposure to risk and uncertainty that is not present when trading domestically and is often compounded by the staggering charges levied for international payments.
It's generally the case that SMEs needing to transfer money abroad choose their business bank account as the first port of call, but foreign money transfer services from the bank are a premium service which can often attract massive fees. Costs tend to be at higher than expected when looking at the actual exchange rate, and certainly in many cases more than the main banks charge their larger business clients. Alack of transparency in the charging structure also means that many SMEs are often oblivious to, or at least not fully informed of, how much they are actually paying for international money transfers until it's too late. One solution to this is to utilise a partner specialising in currency exchange and international business transactions.
Using a specialist money transfer service such as The Currency Account for global payments is a solution to the often high opaque fees levied by banks, helping to deliver significant cost savings. Clearly the ability to trade effectively overseas and maintain an international presence is vital for small businesses operating in the global business environment. So it's important that costs incurred by conducting business internationally are trimmed to minimum levels to maintain profitability and enable business growth.
This simply makes good sense, particularly when the cost saving can be combined with an easy-to-use platform and a tailored client service delivered by the very best market experts.
SMEs benefit from a completely transparent service, with fees fully notified up front and exchange rates pegged at leading foreign exchange prices.
When exchange rates are poor and current providers don't give the transparency that's needed on fees or exchange rates, business profits can really be cut to the bone. All senior team members of small to mid-sized businesses need to be fully aware of just how much it can cost to send money overseas. This kind of information is vital for a range of business decisions, from negotiating prices with suppliers to hiring staff and contractors.
In addition to the fundamental benefit of reducing the cost of doing business, using a corporate dealing desk from a specialist like The Currency Account helps any SME smooth out foreign exchange costs and develop an ongoing business relationship with their provider.
Any SME needing to process international money transactions on a regular basis will benefit from the secure and cost-effective service provided and the knowledgeable team of experts handling currency transfers. Access to a secure online FinTech platform also enables transactions to be carried out quickly and efficiently whether making a one off payment or managing multiple transactions across multiple currencies.
One of the principal advantages with a service like this is that a customised offering can be tailored to meet individual client's needs, while a dedicated currency service ensures insight and guidance is available for money transfers to any area of the globe.
Corporate dealing accounts make it easy to release on the spot cash for immediate payment requirements in any country, at any time. All clients are advised of the costs of the transaction up front and funds can be wired or delivered within the shortest possible amount of time.
SMEs are particularly vulnerable to volatility in exchange rates and this can make it difficult to plan business purchases with any degree of confidence.
A forward contract arranged by The Currency Account cuts out all this uncertainty, as it enables a form of "buy now, pay later" culture. In essence, if you need to order goods from overseas and payment will be due in a couple of months, taking on a forward contract allows you to fix your purchase at today's rate, even if the delivery and payment are not due for a few months. This means you'll know exactly what you will be paying for your goods before even placing your order, allowing you to maximise your business profits at all times.
SMEs needing to make regular international payments or wire transfers will find it's easy to instruct their corporate trading desk to manage these payments effectively and ensure they are consistently met by due dates. This cuts out an entire raft of admin for SMEs making it far easier to focus on the core of what matters when building the business.
Corporate trading desks can also be instructed to purchase currencies at desired rates. This is known as conducting a market order and can be a highly effective strategy to leverage foreign exchange in favour of an organisation.
So, if your business wants to nominate an exchange rate for buying or selling currencies, putting a market order in place means there's no need to be constantly checking for ex rates, as your corporate trading desk will handle the currency deal at a time the rates are at a desired level.
Working effectively with a currency transfer specialist like The Currency Account can really help any SME protect cash flow and maximise profits. Currency hedging tools like the ones described above allow internationally trading businesses to lock into preferred exchange rates and smooth out currency trading risks. There will no longer be any need to worry about unexpected downward currency shifts and budgetary needs of your SME are maintained at acceptable levels, at all times.
The Currency Account enables SMEs involved in international trade to save money by reducing transaction costs, stay in control of international cash flow and ensure consistency in the costs of transferring money or making payments abroad. All while keeping funds safe and secure in Tier 1 international banks.