Businesses that need to export goods or services to foreign countries frequently need to carry out transactions in foreign currencies and, therefore, exchanging currency is essential to their work.
The advantages to an exporting company
These are often more significant in larger businesses than smaller. This is why goods and services are normally exported in such large quantities. The greater the quantity of goods and services that a company is exporting in a given time, the greater the possibility of incurring large losses in money due to fluctuating exchange rates and market volatility.
The internet and e-commerce industry has somewhat facilitated the exportation of goods and services and so more and more companies need to consider currency exchange issues associated with trading globally.
Issues exporters face
The issue that exporters are faced with is that the process of exporting goods or services involves employment of transporters in foreign countries as well as customs in the country of import. Fees paid abroad have to be paid in the local currency and so your company will need to exchange the home currency into the local prior to payments. If the exchange is not made before the transaction, then you may lose money because of an unfavourable currency exchange rate. It is essential, therefore, to plan currency exchanges in advance in order to exploit good rates and maximise the value of your money. For companies that rely on large amounts of exports, exchanging at the right time can save a lot of money that can be invested elsewhere in the company’s success.
If you need to import goods or services from a foreign country, you will need to pay for the goods and for the exporting fees in the home currency of the exporting body. Your currency, therefore, will have to be exchanged prior to the transaction.
For those that are involved with large shipments of goods, a huge sum of money can be saved if currencies are exchanged wisely. It is also important however, for those executing smaller imports to bear in mind the effects that fluctuating exchange rates may have on the value of their money.
Some companies may need to import components from an array of different countries and so they will be handling large amounts of money in many different currencies. This may feel stressful and distract the focus from the company. However, smaller imports are also common. In this case there will be fewer transactions and fewer currencies involved, but it is still important to consider the savings that you could make by exchanging at the right time. In this way you can make your money go further.
The process of importing goods can be taxing enough without having to worry about the issues associated with making transactions in foreign currencies. Hermex can help eliminate this extra strain by offering a competitive exchange rate and by minimizing unnecessary costs associated with exchanging currencies.
Exchanging between two currencies is stressful enough, but companies that are involved in exporting/importing goods or services often have to deal with a large number of currencies. Hermex can help relieve you of the stress of exchanging currency. With a firm belief in person-to-person contact we can focus on your needs both personally and as a company.
Our highly experienced account managers are available to meet in person, or accessible by phone or email. Please do not hesitate to contact Hermex either by email at firstname.lastname@example.org or by phone on +44 (0) 207 856 2490.