INTERNATIONAL MONEY TRANSFERS FOR BUSINESSES
Importing goods and Services: How Can We Help?
Import/export and retail businesses need to transfer money internationally in a way that doesn’t eat into their profit margins. While it's possible to get by on single payments and bank transfers, it's businesses that consider the big picture that prosper.
In the current economic climate, Bank of England policymaker David Miles admits that flat demand in the eurozone is stifling UK exports. The Confederation of British Industry (CBI) predicts that by 2050 China, India, Brazil, Russia, Mexico and Indonesia's economies will be larger than those of any European Union country. This means businesses need to adapt to different currencies and ways of operating.
Some businesses will be able to turn to the government for help, particularly with initiatives like the UK’s Export Refinancing Facility in place, which supports international business loans. For all import/export and retail businesses, however, it’s also vital to have a solid understanding of how the exchange rate affects your core markets. This will inform when you buy and your volumes for the year ahead. A 'currency exchange contract' or 'forward contract' is ideal if you're worried about big rate changes over a set period of time. These let you trade multiple times at an exchange rate that's fixed for that period, protecting you against negative movements.
We have developed special International Business Payments 101 Guide to help you understand key elements to consider when making business payments. To download our guide please complete the form below.