The Halloween costumes have been packed away for another year and the Guy Fawkes bonfires have well and truly burnt out. It can mean only one thing: Christmas party season is finally upon us. That magical time of year when our focus switches from pouring over spreadsheets to pouring the free wine at the annual office shindig.
Much like drawing up a list of Christmas party dos and don’ts – do agree with everything your boss says, don’t drink all the wine – can keep your reputation intact, doing the same when sending money overseas can keep your business’s finances intact. Here are a few top tips to help you make the most of your international payments.
- Default to your bank: banks offer corporate customers an extensive range of services. However, when it comes to exchange rates and managing international payments, conventional banks may not necessarily be the most cost-effective solution for your business.
- Use a currency specialist like RationalFX: as well as receiving completive exchange rates, you will be assigned a personal account manager who can provide market guidance and insight that empowers you to make informed decisions about the timing of your payments.
- Forget to check for any hidden costs: don’t choose a payment provider without checking to see how much they charge to make a transfer. Otherwise, you might receive an unwelcome financial surprise when it’s too late.
- Choose a transparent payment provider like RationalFX: we only charge a small transaction fee of £4 (or equivalent for your designated currency) – this is waived when using our Regular Payment service.
- Try and predict currency market movements: you can’t be 100% sure how the political and economic events that influence currency markets will turn out. This makes it impossible to precisely predict which direction exchange rates will move, or by how much.
- Hope the currency market moves in your favour: don’t adopt a reactive approach to currency risk management. This lack of foresight will leave the cost of your international payments completely unprotected against exchange rate fluctuations.
- Establish a currency strategy: by working in partnership with your RationalFX account manager you can adopt a proactive approach to your business’s exposure to currency risk. They can help you establish a tailored currency strategy using specialist tools, such as forward contracts and market orders, to help reduce the impact of unpredictable exchange rate fluctuations.
- Secure a rate using a Forward Contract: this allows you to secure the current market rate now for an international payment that happens up to two years in the future. This gives you peace of mind that the cost of your international payments will remain unaffected by exchange rate fluctuations.
- Track a rate using a Market Order (limit order or stop-loss order): this allows you to choose a trigger rate you want to make your international payment at. Once the market reaches your desired level, your payment will be executed at that rate, eliminating the need to constantly monitor the currency markets.
- Neglect your regular international payments: whether you’re paying invoices to overseas suppliers, paying payroll in a foreign currency or making another regular international payment, don’t do it manually. You might end up paying more than you need to or even forget to send the funds altogether.
- Use a regular payment plan: if you’re making the same international payments each week, month or quarter, a Regular Payment Plan can provide your business with confidence, efficiency and cost-effectiveness. It automates the payment process to occur in line with your required schedule, either using the current exchange rate or a rate you have secured using a forward contract.
Do create an account with RationalFX to start making your international payments more efficient, cost effective and convenient.
Don’t forget that we’re giving one lucky business £/€1000 towards their company Christmas party! All you have to do is make a transaction of £25,000 or more between the 4th – 17th December 2019 for your chance to win.