Many in the wine industry have been working with overseas suppliers and clients for years. Yet there are still a number of importers and exporters who are unfamiliar with or even unconcerned about foreign exchange. But you should be! A simple phone call or two can save you a significant amount of money.
The foreign exchange market is very volatile. Ever-changing political, economic and social conditions throughout the world affect international markets and can cause the sterling to strengthen or weaken dramatically, relative to other currencies, costing you substantial sums.
Interchange focuses on measures that eliminate the risk of fluctuating rates and offer several options that allow you the importer or exporter to control costs and guarantee a pre-established profit margin.
Unbeatable Rates
Making payments in foreign currency allows you to lock in a rate of exchange, and with Interchange you will always get a rate far better than your bank.Immediately knowing the exact sterling amount of the foreign currency eliminates the riskof sending too much or too little. In addition to saving money, you build a better relationship with your suppliers because payment is in the local currency; the supplier then receives immediate credit without paying an expensive conversion fee.
Forward Contracts
Many wine importers and exporters who need to set a price for products and services from abroad and guarantee a profit margin should be using forward contracts. Forward contracts lock in a rate of exchange today, for foreign payments to be made or accepted at a specific date within one year. Locking in a rate of exchange ahead of time enables you to know the exact sterling cost of a foreign invoice; a cost that will remain fixed.
If a forward contract is not purchased, the importer is, in effect, speculating that the price of say, Euros, will be lower when the invoice is due. However, there is a possibility that the price of Euros will be higher. Whatever the market price of the Euros is at the time the forward contract matures, the importer benefits from having guaranteed a profit from the start.
"Having been unable to contact my Bank out of office hours by e-mail, fax and phone, Interchangefx is the perfect answer.”
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Cheers fromJohn Freeland
C.A.Rookes Wine Merchants & Importers of Fine Wines. |
Whatever your foreign exchange exposure may be, Interchange will work with you to tailor a program to meet your specific international accounts payable and receivable needs.
Open an Account NOW or call Michael Gibson on UK Freephone 0800 197 3995 to discuss how we can save your business money.
FOREIGN CURRENCY EXCHANGE SERVICES
