International payments made easy

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If you run a business which necessitates international money transactions, then you’ll already know that this can be problematic for small companies. Larger organisations are able to plan and hedge their currency exposures, but smaller firms can find it difficult to organise foreign exchange effectively – particularly for one-off contracts.

The volatility of foreign exchange markets exacerbates this problem. For example, one US dollar will buy you around three quarters of one Euro as things stand today. But over the last year or so, the same figure has been up to 82 cents, and as low as 67 cents. These figures represent a swing of around 23% in just a few months.

Such volatility can work in your favour, of course, but it may not do. And carrying out sound business across international boundaries shouldn’t be akin to a crap-shoot in a casino! Even quite a small swing can destroy any profit margin if you aren’t hedged ahead and you haven’t come to any kind of formulaic forward agreement with suppliers or customers.

Unfortunately, there’s no single easy way around this problem. But it is generally wiser to hedge as this allows you to plan ahead. If your company needs to transact £1million or less in foreign exchange each year, then the HiFX international payment system allows you to do this very cost effectively.

HiFX and other companies like it can get closer to the spread of buy / sell prices on international currencies because they’ve invested heavily in the requisite technology to enable online trades and the consequent volume of business they generate means economies of scale in shaving margins and passing them on to customers – to be more competitive and write more business still.

The company can also let you know, automatically, when currencies hit your target buy or sell prices and can help you hedge deals ahead. What’s more, it can all be done easily online – allowing you to make snap decisions 24/7 wherever you may be in the world.