How to Protect Your Business from Exchange Rate Volatility

Exchange rates can be incredibly volatile which is problematic for businesses because this could have a serious impact on your bottom line. So, what can you do to protect your business from exchange rate changes?

Foreign exchange rates

Although impossible to predict movements in this market, there are a few steps that you can take to protect your company.

Planning

Like many areas of business, planning is crucial to success in this area. Analyse past trends and set a budget each year which accounts for the number and timing of transactions with a realistic assumption of current and future rates – speak to foreign exchange specialists for advice on this.

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Insights for Small Businesses with Exposure to Foreign Exchange Risks

Small businesses seeking to grow their bottom lines often have to look for opportunities beyond their immediate markets. Many small businesses looking for growth often forge strategic alliances for international exposure. Some small businesses find suppliers in foreign markets in order to create a competitive advantage. Other small businesses hire professionals in foreign countries or market their products and services to buyers in other countries.

Foreign exchange risks

Interestingly, when it is time to create financial accounts, many business owners with international exposure are surprised that their top and bottom lines are not impressive. A small business with foreign exposure can still lose money despite the fact that they have excellent products, sold at decent margins, and with good marketing strategy in place.…

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3 Tips to Avoid Losing your Business’ Money on Foreign Exchange

Small business owners are ever more likely to be working with a variety of currencies as technology has allowed even the smallest of enterprises to trade on the global market. But most banks often charge hefty overheads for foreign exchange for business.

Currency exchange

Here’s our top 3 tips on how to avoid losing money on your company’s currency conversion.

Find a specialist multi-currency account

The overheads that banks charge for international business transfers have irritated many an SMB owner over the years. A natural progression from this has been a growing number of specialist multi-currency accounts.

These accounts aim to transfer and convert your currency at a fraction of the cost of the big banks.…

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