Expanding internationally is an exciting but daunting time for any business. Whether it’s on the supplier-side or the customer-side, it’s highly likely that you will need to make some foreign currency exchanges to facilitate transactions. At The Finance Hub, we understand that even for established international enterprises, navigating the FX space can be a time-consuming and complicated task which often results in missing out on the best possible deal. So here are some key considerations when choosing an FX provider that’s right for you.
When dealing with foreign exchange (FX), the associated costs and fees are often a key consideration. For example, when making exchanges through a bank with no specific provisions for foreign exchange, you can be charged fees just for making the transaction and given a particularly poor exchange rate. However, if you use a dedicated FX provider, such as our Foreign Exchange services through The Finance Hub in Tunbridge Wells, fees will be packaged differently.
Fees per transaction are likely to be minimised and offset through receiving a more favourable exchange rate. This is particularly beneficial for businesses who have made arrangements to be fulfilled over a specific time period themselves, needing an adaptable FX service to fit their needs. That’s why our Foreign Exchange experts in Tunbridge Wells will always look for the best long-term rates for your international business interests – rather than just the best one-off rate at that time!
Each provider, depending on factors such as size, capacity, and expertise, will be able to offer different levels of service to you as the customer.
Some providers will simply give you access to an online platform without advising you on how to make the most of the functions available. Services with a dedicated account manager on hand that can support you with how to make transfers, as well as talking you through other possible products relevant to your business and the way it operates, is much more effective for your business and results in a tailored and specialised offering. This helps you make the most of your money.
Some currency providers look only to provide you with the best exchange rate at that moment. This is fine for making exchanges when travelling or other one-off situations, but for a business making several transfers as part of a long-term arrangement with other businesses abroad, this short-sighted view can put a serious dent in your bottom line. As a result, it’s important to find an FX provider who can take this longer view, look at your plans and help you make robust decisions about when and how to make exchanges, managing risk and protecting your business.
All of this is especially important in the wake of COVID-19, a time in which markets became increasingly volatile as the impact of the pandemic affected supply chains and general productivity unpredictably. There is also the current devastating situation in Ukraine, which is also having an impact on currency markets.
In these unprecedented times, it’s more important than ever to have a knowledgeable foreign exchange specialist by your side, helping you make informed decisions in this turbulent market.
At The Finance Hub, based in the 1887 building on The Pantiles, Tunbridge Wells, our specialist foreign exchange experts have the knowhow you need to navigate the foreign exchange services that could benefit your business interests.