If you are importing products or services from abroad then this may even be on a weekly or even daily basis. It could be you are buying furniture from Scandinavia or America. You could be buying web design services from Asia. Or buying equipment and technical support from the UK. In each case you will need to buy the relevant currency to pay the bill – typically via your bank.
And if this applies to you, you will already know that a number of things are against you. Take exchange rates for example, forever moving up and down making it very difficult to predict what your actual costs will be. Then there is the rate that the bank will quote you – very different to the rate you see online in the public domain.
So this is one area where a specialist currency broker can help you. Not only will you get a better rate than the banks will offer, but they can reduce or remove the risk of the rate moving against you during the course of a contract or invoicing period. They do this by fixing the exchange rate at the beginning of the period, therefore giving you budget certainty. Each business and situation is different, so a good broker will work with you to customise a solution which exactly fits your business.
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This article was written on the 10th of July, 2017.