Managing costs when transferring money overseas
Managing costs is at the heart of every finance and accounting professional’s responsibilities. Which means that clarity, predictability and fairness regarding business costs are crucial qualities for those professionals.
Whether it’s personal funds or a business paying a supplier, currency risk is ever present and can cause margin compression and supply chain disruption. Volatile financial and currency markets make protecting risk against currency volatility even more important. Additionally, individuals and businesses are going to have a lot on their plate as they emerge from their enforced hibernation from COVID-19.
Banks vs payments specialists
High-street banks don’t typically focus on international payment services but rather their core product areas like savings accounts and loans.
Compared to a bank, a specialist payments company will offer a comprehensive range of solutions to help you maximise any currency payment you need to make. Using the in-house expertise of these companies, you can also make informed decisions about when is best to move your money overseas to protect investments and business finances.
Getting the timing right
When trading internationally, there is a natural risk arising from currency market movements. All major currencies - whether due to politics, economics or other external factors - will fluctuate against each other, creating both risks and opportunities.
Receiving expert guidance from a currency specialist could save you hundreds or thousands of pounds. For example, over the course of the last 12 months alone, the GBPEUR rate has fluctuated to such an extent that a payment of £10,000 could have returned up to €970 less depending on when you made it.
As we saw in the aftermath of the Brexit referendum result, issues out of our control can cause currencies to suffer sharp devaluations, with substantial knock-on impacts for those who are sending money overseas.
Market monitoring service
If you or your clients are transferring money overseas, then you need to find a global payments specialist company to work with you to optimise your position, minimise any currency risk and reduce your costs.
When using a specialist payments company - like Equals Money - a qualified and experienced account manager will be on hand to guide you throughout the whole process of buying or selling currency. By monitoring the market your account manager can instantly help you take advantage of any favourable exchange rate movements and conversely protect you against any currency risk.
ICAS members, and their clients, receive preferential rates and no transfer fees when transferring money overseas with Equals Money. If you would like to find out more, feel free to contact John Kinghorn directly.