Showing posts with label international payments. Show all posts
Showing posts with label international payments. Show all posts

Tuesday, 10 July 2012

Sporting chance for Sterling as Eurozone continues to look uncertain

Spain’s football team has been crowned one of the most successful national sides of all time, following consecutive Euro Championship victories. Meanwhile, off the pitch, its banks – along with those of neighbouring southern European states – are struggling through a perilous and relentless losing streak, putting pressure on the euro.

The recent EU Summit should bring some short-term relief to Europe's struggling banks. European leaders have finally agreed on the creation of a joint bank supervision scheme – to be effective by the end of the year - and the ability of bailout funds to bypass national governments and go direct to struggling European banks. These developments are no silver bullet to the underlying Eurozone debt crisis, but rather a first step in creating an environment that could support efforts of the worst hit countries to begin the fragile process of reigniting economic growth. 
 
The next EU Summit is in October, when the next step in implementation of measures to aid euro nations will be confirmed - as we all know, the Eurozone needs surgery, not a constant stream of Band-Aids. Until then, it is expected that Sterling will retain its three-year high against the euro. We’re hosting the Olympics this month too – the feel good factor from this, combined with the short-term boost to local UK businesses could be a shot in the arm for Sterling. Something worth bearing in mind when timing any upcoming international payments.

Businesses with profit margins affected by market fluctuations can eliminate the risk of buying currency by calling Smart Currency Business on 020 7898 0500 for more information or visit www.smartcurrencybusiness.com to find out how much you can save.

Ten top tips for businesses making international payments

Carl Hasty, head trader with Smart Currency Exchange offers ten tips for businesses looking to make international payments.

Do your homework
There are now a wide range of options for making payments abroad. First and foremost, then, do your homework. Consider your requirements: do you need to make a few one-off payments? Or do you make regular payments to particular suppliers? For regular payments, a specialist foreign exchange (FX) supplier is the most cost effective option.

Look beyond banks
Banks were once the mainstream option for making international payments. However, technological and regulatory change has opened up the FX market. Many of the newer solutions compare favourably to banks – offering lower fees, more competitive exchange rates and better service.

Beware hidden charges
The two costs to consider when making payments abroad are fees and exchange rates. With some companies you need to be wary of hidden charges which can mask the true cost of a transaction. In terms of exchange rates, some providers might advertise ‘commission-free’ payments but then hike the exchange rate they offer. Look carefully at the small print whoever you use.

Ask about final costs
Look for transparency and openness from your FX provider. A reputable FX provider should happily tell you the final cost of your transaction after charges and exchange rates are taken into account, enabling you to make an informed decision.

In whose interests?
Our own FX traders are not paid commission – meaning they always have the client’s best interests at heart. This, for us, provides a safety net for the client, yet it is surprising given the scrutiny the financial services sector has been under of late that more firms don’t take our approach. Whichever FX supplier you choose, it is worth asking how their traders are paid.

Comparing rates
The UK has the most crowded FX brokering market in the EU. But how do you compare the exchange rates of various brokers? A number of useful comparison websites have set up to help with this - www.fxcompared.com is clear and easy to use.

Don’t forget security
Ensure your FX company is FSA authorised. Also satisfy yourself you are dealing with a reputable player. Ask for testimonials and find out how long the company has been in operation. Currency exchange businesses don’t have to be authorised by the FSA unless they are trading more than three million euros a month – meaning if there is a problem, you won’t be guaranteed full protection.

Service is key
We believe your FX and international payments provider should be doing more for you than simply providing competitive rates. They should work with your business to understand its goals and keep it up to date with events in FX markets – by doing so, your business could save thousands of pounds each year.

Timing is everything
We always inform clients when the exchange rate for the currency they are transacting in appears good – and offer them the choice to ‘buy in’ currency for future payments using a forward contract. Businesses save a fortune by getting the timing right; again, this is something a quality currency partner should help with.

Be careful!
FX markets are volatile right now, reflecting uncertainty in the global economy. Ask your FX supplier about hedging techniques which can help protect against wild fluctuations in exchange rates. They should be ready to explain about the principles of hedging – and how they apply to your business requirements - in a clear and easy to understand manner.

For more information about FX, please see www.smartcurrencybusiness.com and download our free Outlook. Alternatively call us to discuss your requirements on +44 (0)207 898 0500.

Friday, 13 August 2010

Ideal Payment Options for International Currency Exchange

Every foreign money exchange provider has its own set of options that clients can use to exchange their currencies to suit their requirements. However, there are some methods that are safer and more profitable both for the customer and the company that you should make the most of.

One option for payment is the spot contract method, which allows you to send a lump sum of cash in your desired currency within a couple of days. You may need to use this spot contract when you need to make payments like bookings, deposits, initial fees and other transactions that are required before closing a deal. You can send the foreign currency directly to the bank or institution of the recipient fast and easy, so that you can proceed with your business overseas.

The second payment option is a forward contract, and this helps you secure the exchange rate especially if you are working within a budget. For example, if you are buying a piece of property abroad, with the constant market fluctuations, the going price that you were given can rise drastically, forcing you to pay much more to get your property. With a forward contract, you can buy your currency at its most affordable rate today, and then pay any additional amount later. This way you can even make some returns for your investment without worrying about price changes.

A third foreign money exchange option is order to call or order to buy. These are different methods of payment, but they are both for someone who is trading in the currency markets with no urgent need for returns. In the two options, you state the rate at which you are willing to buy the currency in the near future. When the currency does reach your estimate, the order to call option is where your currency trader asks you whether you want to buy the currency, while the order to buy is where your trader buys the currency for you. These options can be used at the same time with different currencies, so you stand a chance of making good returns for your currency trading.

Another payment option that gives you control of your currency trading is the limit order. As the name suggests, you can limit the rate at which your traded currency will reach, that is, give it a ceiling, and then opt to buy or sell the currency for profit. You will need to observe the currency trading market for quite a while to establish your preferences to use this option.

For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyBusiness.com

Wednesday, 28 July 2010

Free lunches...!

The old adage states that ‘there’s no such thing as a free lunch.’ But is this always true? I think not – and I’ll tell you why. Because of the Internet and changing marketing practices today, there is a virtual treasure trove of valuable information available - and most of it is free! Now, I don’t dispute the fact that there’s quite a bit of drivel, however, if you’re interested in gaining a greater understanding about almost anything, the Internet provides an incredible starting pint - and a potential finishing point too.

In terms of marketing practices today, many organisations have learned that the best way to help consumers to purchase their products is to educate them rather than to manipulate, coerce or control them. Just last week, a friend of mine was in absolute misery due to ‘morning sickness.’ She was aware that many women experience nausea during pregnancy yet she was unequipped for just how bad it could be. After a few days of extreme discomfort, she went onto the Internet, discovered around ten ways to minimise the effects – and, within an hour, she was armed with several options – all for free!

After a lot of research and much useful and free advice she eventually settled on an e-book on ancient Chinese pressure points. Within 2 days of purchase her ‘morning sickness’ was a thing of the past. Both the education and the e-book proved invaluable…most of the advice she had used was free and the book was good value: job done.

In this case it had not been absolutely free - so…what about having that free lunch and saving money in the process?

Smart Currency Exchange, the international payment specialists, offer two free reports that not only help readers to make more educated decisions but that also enable them to save hundreds if not thousands of pounds in the process. One report is for individuals that need to make large lump sum payments or small regular payments between Cyprus (it could apply to anywhere abroad) and any country outside the EU (say, the UK). These payments can include paying for a property or making mortgage or pension transfers. The other free report is for companies that need to buy or sell goods or services with countries outside the Euro zone.

Both reports outline how the international payment process works, with a focus on where and why particular expenses occur. Once the reader fully understands this, each report details exactly how to eliminate, if not reduce, the various costs and expenses. The reports allow readers to get valuable free information and, in the end, each reader will be armed with various tools to reduce their expenses dramatically, thus saving money too.

The information has been written in an easy-to-read format with absolutely no jargon. It outlines common mistakes that people make, along with case studies, so it’s easy to relate the information to everyday life. And neither report is longer than 10 pages – giving the reader quick, valuable information that can be assimilated in under 10 minutes.

Just by reading the Smart report could save you huge sums of money. On average, international payment specialists save individuals and organisations €40 for every €1,000 transacted through better-than-bank currency exchange rates. That means that someone buying a property in, say, Cyprus or repatriating back to the UK could save €8,000 on a €200,000 property. Or, an organisation that’s buying or selling goods could save €4,000 on a €100,000 transaction!

Getting better-than-bank currency exchange rates is only one of the tools that the reports discuss. Another significant aspect in relation to the international payment process is planning. If you need to exchange money and the markets are not looking favourable, it’s possible to reserve or lock into an exchange rate even if you don’t need to do the transaction right away.
Imagine having to move €400,000 back to the UK in a month’s time, knowing that the rate is at 1.10 with forecasts of it getting weaker. Imagine watching the value of the €400,000 go from £363,636 to £350,000 – it’s enough to make anyone’s stomach churn – and this type of situation is completely avoidable! By reserving a rate today, you’ll know that the value of the exchange will not change at all in a month’s time.

In conclusion, if you have any need to make international payments, by reading one or both of the Smart reports, you’ll not only get a ‘free lunch’ (something of high value at no cost), but you’ll also learn how to save money throughout the process. So, to find out how to save money, from an individual’s perspective (rather than a company) please go to http://www.smartcurrencyexchange.com/FreeCurrencyReport.aspx to collect your free report.

As for companies, or anyone sending or receiving funds for business purposes, just go to http://www.smartcurrencybusiness.com/freeCurrencyReport.aspx to collect your “free lunch!”

There is absolutely no obligation – or strings attached! Our hope is that you read the reports and are so enthusiastic about the potential savings that you call us. The worst thing that can happen is that you spend 10 minutes reading educational material only to choose that saving money isn’t for you…

Charles Purdy is a Director at Smart Currency Exchange, the international payment specialists. To get more information on us – or any of our educational material – you can also call us on 0207 898 0541.

Here is a slightly irreverent testimonial for Smart from Ian Munro!
I would like to express my satisfaction with the ease and convenience of using Smart Currency Exchange. My money was placed into my designated account within 24hours of transfer at the rate I wanted. I guess the biggest pleasure is reserved for knowing you can stick your finger up to the Banks with their less than generous rates and tardy service. I will definitely use Smart Currency Exchange again.

Thank You,

Ian Munro.

For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyBusiness.com

Friday, 4 June 2010

Why Businesses Lose THOUSANDS on International Payments

Are you a business using your bank for international payments or receipts? Then according to Charles Purdy, “You could be losing thousands. Depending on how much you transfer, in some cases your losses could amount to tens of thousands each year - and these losses are entirely unnecessary. But how can you avoid them?” Charles explains further.

Transfer Fees
You probably know international bank transfer fees are a nominal €20 to €30 per transaction and over the course of a year these fees add up. Even if you are only doing 5 transfers per month at €25 per transfer this is €1,500 per year – and these fees can be reduced, if not eliminated.

Bank Margins
Banks make their money on international transfers by selling currency at the interbank rate plus a margin which in some cases can be very significant. The margin applied by the banks could cost your company 1.0% one day and perhaps 1.5% another day! Most banks do not apply a fixed margin - nor do they offer competitive exchange rates. This means that the variable cost of your company making an international payment for €100,000 could be €1,500 or even higher. Rather than using a bank, it is possible to arrange an agreed fixed margin.

Failing to Fix a Forward
So what does this mean? A forward contract allows your company to reserve a certain amount of foreign currency at a fixed exchange rate to be used by a certain date.

In other words, in January 2008 your company could have reserved the rate of €1.33/£1 for £2million of euros to be used throughout 2008/2009. To secure a forward contract all your company needs to do is supply a deposit of 5 to 10%. Any company who fixed an exchange rate early in 2008 for either €'s or US$'s would have saved themselves huge additional costs as sterling weakened throughout the year.

The Alternative
By using a specialist, your company can reduce fees, get rates that are more competitive than the bank and reserve money at fixed rates for use in the future. Some specialists offer a transparent fixed margin allowing companies the peace of mind that they’re getting a good rate for every transaction.

Charles added, “At Smart Currency Exchange, we perform international payment "audits" free of charge, to identify the level of cost savings possible for your company. The savings experienced are always welcomed - particularly in this current economic climate”.

For more information on Smart Currency Business call: 0845 638 0571 (or +44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyBusiness.com

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Smart Resources

Currency Report
Have you read our 10-page Currency Report 'Why UK businesses unknowingly lose £££'s on making and receiving international payments...And what they can do to avoid it!" Get the report here!

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Smart Articles (For Clients & Press)
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Disclaimer
Exchange rates can move very quickly. The above rates are valid at a moment in time. We have no crystal ball and we recommend that if an exchange rate works for your budget then don’t wait for an even better exchange rate - Murphy’s Law says the rate will go against you and cause you maximum pain! Suggestions should not be taken as advice or fact.

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