Global trade continues to expand at a staggering rate. Accordingly, foreign exchange and international payments have fast become standard business practice.
Over the past decade there has been particular growth in emerging market trade. No longer solely the domain of large multinationals, increasingly small to medium size organisations are branching out and conducting trade in exotic currencies.
Whilst international trade offers unmatched potential for growth, it’s not without risk. Foreign exchange markets are unpredictable and susceptible to volatility. As such, it’s imperative that organisations of all sizes effectively control risk and exposure at every step.
To help combat the various challenges associated with foreign exchange and international trade, we’ve outlined our top tips to help you get the most from your payments:
- Always check the exchange rate and transfer fee
It’s an obvious message. Amazingly though, it’s something that many businesses often neglect to check. The rate advertised often isn’t what you get and hidden fees are often concealed. What’s more you could be getting a much better rate than is being offered.
- Expect fluctuation
Whether you’re an importer or exporter, changes in the market can occur in a second. Without warning, a negative change in local currency can see profits dissipate and losses incurred. Try to keep abreast of the latest news, events and trends, both globally and region specific.
- Build links and foster relationships
Following on from the previous points. Look to trade through a provider with specialised regional insights and a strong personalised support network. This without doubt, will help you to gain the best region specific advice and lower your exposure to risk.
- Use regulated providers
Security is of paramount importance when making international payments and protecting your bottom line. Always check your provider is Financial Conduct Authority regulated in the UK, or worldwide local equivalent.
- Simplify your payment process
In our globalised economy speed is of the utmost importance. As such to better streamline how you make and receive payments look to work directly with FX specialist, rather than say banks. Not only are specialists more efficient, but the value of these efficiencies are able to be passed back to their clients.