There is no crystal ball that can accurately tell you the future of where a currency will trade in the short, medium or long-term.
When looking to partner with an FX provider, your first priority should be to evaluate the payments your business has made previously in order to get a better idea of the FX products and services that will best fit your business’ needs. And, when selecting a provider, make sure they understand your industry and the jurisdictions you are making payments to.
How often are you making (or will you make) international payments? Making overseas payments costs more per transaction. The more payments you make, the more critical it is to get the cost per transaction right.
The amounts you transfer affects the overall cost. Smaller amounts will have a higher margin added, therefore it’s worth determining whether you can bundle your payments to sharpen the margin you attract.
With exchange rates constantly fluctuating, the timing of your payments will have an impact on your overall profitability. If you do business in areas where currency valuations are highly volatile, an FX provider which can effectively advise you about the risks and opportunities of short or long-term foreign exchange contracts is ideal.
Each industry is different when it comes to the three factors above. Therefore, selecting a provider that understands your industry can make a big difference, as they’ll often be able to suggest the best foreign exchange service offering for your type of business.
Your business is as unique as you are. Don’t settle for generic money transfer services which treat your business as a number on a spreadsheet.
Finally, when selecting an FX provider, make sure they understand any regional nuances particular to the jurisdictions you are sending your money to – this will ensure your payments go through smoothly, and in a timely manner.
Taking the time to understand these five factors is the first step in taking control of your business’s FX requirements and will put you in good stead when selecting the right FX provider for your business.
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