The value of international trade between small and medium-sized businesses in the UK amounts to approximately £700bn per year. These companies are increasingly taking advantage of the available opportunities to streamline their financial processes. There has been a significant increase in the use technology to improve companies’ finances in recent years. This innovation has mostly occurred outside of traditional banks.
Legacy core IT systems, which were created in the 1970s and are not well-suited to today’s trading environment, can hinder banks’ ability to adapt and change to meet customer needs. Alternative providers such as currency brokers who are experts in cross-border payments processing have many advantages.
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Here are seven key ways a currency broker can help your business succeed if you are an importer, manufacturer, or exporter global products or services.
- Banks can be expensive: This is due to opaque charges in exchange rate spreads. This cost can be significantly reduced by alternative payment providers that offer wholesale rates. This will increase your bottom line.
- Consistent pricing You need to be transparent about the charges, but also know that they will remain constant. Do not try to negotiate exchange rates for your business.
- Speed of execution: Know that you can execute a currency conversion in real-time, easily upload multiple conversion/beneficiary instructions and benefit from faster payment processing.
- Collect receivables: Opening foreign currency bank account is expensive and time-consuming. Auto-generated multi-currency accounts allow you to collect your receivables in multiple currencies. This will enable customers to pay through local payment methods, and lower FX conversion fees.
- User experience Stay informed with real-time push notifications about conversions, payments, returns, and receivables.
- Manage currency risk: Set exchange rates up to one year in advance to reduce the chance of currency fluctuations adversely impacting your supplier payments and customer invoice receipts. You need to plan how you will deal with currency fluctuations that could affect your company’s profits.
- Relationship Many businesses don’t have the resources or time to plan FX transactions efficiently and get little help from their bank. A specialist can help your business.