The greatest foreign exchange challenges all import/export businesses face
In our increasingly connected world, it’s easier than ever for people to get their hands on products from across the globe. But, for importers and exporters, that connectedness has created plenty of new—and some not-so-new—challenges.
Here are the greatest global payment obstacles facing importers and exporters like you, and how working with a Global Currency Specialist can help you overcome them.
Complex payment schedules
Importers and exporters have some of the most complex payment schedules in the business world. Whether your business sells its products directly to consumers or as a wholesale operation, it’s likely accepting payments in one currency and making payments in another. You might even have several different currencies running through your business at any given time. Many importers and exporters are opting to work with a Global Currency Specialist to not only help coordinate those payments to ensure the right vendors get their money, but also to manage the movement of their money in the face of the fluctuating currency market.
Managing currency volatility
The currency market is constantly shifting, and if your import and export business is making and accepting payments without observing those movements, it could be losing money with each transaction. Managing currency risk is not only about making your dollar go further in the global marketplace, but also about hedging against those market fluctuations. Tracking the global exchange market is a great way to get your business ahead of unfavourable currency valuations. However, that’s not only time consuming, but often requires a Global Currency Specialist’s eye to know what geopolitical events to look for, what impacts your might expect from certain market shifts, and how to best protect your business.
Making cost-effective payments
There is no shortage of financial tools—from market orders to forward contracts, and everything in between—to help import and export businesses like yours manage their global payments and get the most out of the currency market. With a multitude of different vendors and suppliers, your import and export business is likely sending money to several different payees every month. Specialized foreign exchange companies have access to a wide range of global payment products, as well as the expert knowledge they need to educate you on the best products for certain situations. Access to the right products can help your business save money by locking in a desirable rate, taking advantage of positive market conditions, and even saving on fees or service charges.
Incorporating variable costs
Depending on the industry you serve and the structure of your business, your costs and sales could be tied to different commodity markets. That adds another layer of complexity when it comes to managing your global payments. Importers and exporters like you also need to consider duty payments and taxes payable to different countries and regions—and the currencies in which those payments need to be made. Those different layers of currency exchange, paired with the movement of money into and out of your different business accounts, make it even more crucial for import and export businesses to have a foreign exchange specialist on their side.
How a Global Currency Specialist can help
At Firma, our Global Currency Specialists will track the foreign exchange market with your business in mind. Your specialist can also make and accept payments on your behalf, ensuring the transactions you make are as beneficial to your bottom line as possible. You’ll also have access to a wide range of financial tools, backed by the expertise you need to leverage the market.
Ready to see how your business can improve with a specialist on your side? Speak with a Firma Global Currency Specialist today!