A complete guide to doing business overseas
How to protect yourself against currency exposure
One of the biggest challenges of doing business abroad is currency fluctuations. Hardly a week goes by without a news report of a major currency move. That’s why it’s essential to protect your payments to overseas staff and suppliers by developing a sound currency strategy.
You can use OFX’s Forward Exchange Contract to lock in a preferred exchange rate for up to 12 months, so you can keep your cash flowing as predicted.
Lock in a Limit Order
If your money transfer dates are flexible, use a Limit Order to set your target exchange rate. When the rate is right, you just confirm the transfer, so you can stay on top of the markets even while you’re out playing golf.
Reduce the amount of time between an invoice and a transaction’s settlement. Doing so may help protect your company against extreme currency fluctuations that could hurt your bottom line.
Negotiate all contracts with currencies in mind
Many suppliers prefer to be paid in currencies like USD, EUR, or AUD. Major currencies may be less susceptible to large fluctuations than emerging market currencies, which could benefit your business. That said, if your supplier is converting costs in Indian rupees into dollars, they could potentially overcharge you on the exchange rate unless you have one specified in the contract.
Once you go global, market movements start to matter more. Sign up for OFX’s daily or weekly market commentary to get the news you need.
The best way to bring your profits home from abroad
OFX can help you save up to substantially in exchange rate margins on any bank-to-bank transfer across 55 currencies. For major currencies, our margins much better than most banks and other FX providers, so you can keep more of your hard earned cash. On top of that, our delivery times are often faster, because we use local banking networks to move your money whenever possible. That means we can often offer same day or next delivery to major markets.
Our local network also extends beyond our bank accounts, with offices in seven locations around the world, the customer support team can help you with your currency strategy 24/7. So wherever you are in the world, OFX can be your partner in payments.
Are you ready to expand into the overseas market?
With the right research and guidance from professionals, you can start doing business overseas and take advantage of global buying trends around the world to boost your profits. As with any other business decision, the key will be in your ability to accurately weigh the pros and cons of going abroad, and then determining the best ways to save the most money while maintaining efficient operations at home and abroad.