On the money:
award-winning international payments for local businesses
At the Finance Hub we are expertly placed to offer a variety of financial solutions for businesses and individuals. International payments and foreign exchange is one of the many areas where we can provide expertise and support through our partnership with Currencies Direct. Read on to discover more…
Currencies Direct is a London-based international payments provider that specialises in foreign exchange solutions for corporate and private clients. Founded in 1996, they were one of the first currency specialists in Europe and have over 25 branches globally.
The Finance Hub partnered with Currencies Direct in 2022 to fill a gap in our offering regarding foreign exchange expertise. Many of the businesses in our network send or receive payments in foreign currencies and now have a provider they can trust to offer excellent exchange rates and risk mitigation solutions.
“In my opinion, the partnership between Currencies Direct and the Finance Hub is exceptionally beneficial and unique,” says Katie Keith on behalf of Currencies Direct.
“It allows us to leverage each other’s strengths to deliver superior financial services and innovative solutions to clients throughout their major life events.”
The company not only provides businesses in The Finance Hub’s network with cost savings on their exchange rates but they also help identify their FX risk exposure.
So, when is your business at risk from fluctuations in exchange rates? If you deal in multiple currencies, use international suppliers and buy and sell in overseas markets, you are at risk to market movements the majority of the time.
How to determine which areas of the business are most at risk varies from business to business, but there are key indicators that Currencies Direct can help to identify. As many companies start to finalise their budget for the next financial year, understanding how to best mitigate these risks and include exchange rates in budgets is crucial.
Businesses that know their outbound (or inbound) foreign exchange requirements will need to include this as part of their budgeting process. This can be difficult as although they may understand how much currency they require over their budgeting period, they do not know how their required currency pair will move during that time.
As a result, it can be challenging to determine an appropriate exchange rate to include in your budget and lead to potential losses if miscalculated. More and more SMEs are seeking expert support in this area and are locking in profits to protect cash flow.
This is done through the use of forward contracts which are simple non-standardised agreements to exchange two designated currencies at a predetermined exchange rate on a specific future date. Highly effective at protecting against adverse market movement, forward contracts remove the likelihood of nasty surprises by allowing businesses to lock in an exchange rate for later use. This gives finance teams much greater certainty when managing funds and payments in multiple currencies.
Managing international payments can be daunting and expensive if not planned for. By utilising the expertise at the Finance Hub and our relationship with Currencies Direct, business and individuals can access decades of experience, excellent rates and risk mitigation solutions.
Find out more by contacting us on 01892 280000or come in for a visit in our modern offices in the prestigious 1887 building in The Pantiles.
