Paying Overseas Suppliers:
Buying & Selling
Whether you are thinking of buying or selling a property overseas, it’s important to understand that the process may be different from that of the process in your own country. The world is now more accessible than ever before and so, whether you are buying a second home, investing in an up and coming market, or are looking to take advantage of house prices, you need to ensure you make the right decisions to avoid the pitfalls that can await. A key factor in buying or selling a property abroad is the foreign exchange rates, and transferring money overseas. When dealing with overseas property, especially from the UK, you will need to exchange currencies and send and receive funds from abroad. If managed well the process can be smooth and beneficial, but without expert guidance you can end up losing thousands of pounds from the transaction. This is where NewbridgeFX can help you to manage the risks and guide you through the process.
Paying Overseas Suppliers
Making Informed Decisions
Speak to a specialist at NewbridgeFX to send money to overseas suppliers.
Is send money to overseas suppliers a regular occurrence?
If so, then a Forward Contract could be appropriate for your business, as it enables you to secure an exchange rate today, and you can use the contract to draw-down and send a smaller amount to your suppliers on a regular basis.
Do you send money to various suppliers but in the same currency?
If so, then you could book a limit order with NewbridgeFX, which would secure an exchange rate above the current market levels should the rates strengthen before your payment is due.
Do you make many payments to your overseas suppliers?
Regardless of how many payments you send, NewbridgeFX will never charge you a fee to process the payments. Funds sent as Swift, or local delivery routes, offering you fast settlement times, and secure delivery.
Paying Overseas Suppliers:
Risk Management
Risk Management Options
With an array of options, it helps to use the professional services of a reputable Foreign Exchange broker, such as NewbridgeFX, as we are able to point you in the right direction and help you make informed decisions.
One option available to your business is a forward contract. This form of payment makes it possible for you to lock in an exchange rate for a specified date in the future. These are particularly useful if you need certainty over the local currency of a known future invoice. This will enable you to have confidence knowing that a currency exchange takes place at a rate agreed between you and your supplier.
Another available option is a spot contract. This is a common product and is effective when you want to make a payment through your bank or a foreign exchange broker. The exchange rate is the live market rate between two currencies, with payment settled on the same day. It’s an ideal option in those instances where payments need immediate settlement.
If you have flexibility when you pay your supplier then it’s possible to use market orders. If you want to manage currency risks then this is a great option. Through expert help, you can opt for a limit order which means that you can choose a specific rate that is above the current rate of exchange. If the rate reaches, then the transaction is secure, and the payment processed.
So, when it comes to paying overseas suppliers, it pays to consider the importance of monitoring the exchange rates, and opting for the best option based on your needs and circumstances, something that NewbridgeFX can help you with.
To achieve this, there are many things to consider such as exchange rates, transfer fees, efficiency, and the ability to manage what could be many different currencies.
Overseas Property:
Bank Rates
Don’t Succumb To Bank Exchange Rates
It might seem simple enough to make the relevant transfers or receive payments through your bank. But in practice, the exchange rates are not going to be favourable and you will end up paying more or receiving less. If you opt to use a foreign exchange specialist, such as NewbridgeFX, then we will help you to achieve the best results based on experience and real-time information.
What’s more, it will be possible to put in place risk management strategies. The strategies will be beneficial to our clients and based on their best interests. Such as using spot contracts, forward contracts, or market orders, or a combination of these, to achieve the best possible price, exchange rates, and service.
Along with this, if you choose to use a specialist service then you are not going to feel as only part of a large database. As a client, you are going to receive support and expert guidance tailored to your needs, which will ensure the process is effective and efficient while providing complete confidence.
The transfer of funds for buying or selling a property abroad can come with risk. Yet you can mitigate those risks by making the right decisions and relying on expertise. With competitive rates, market insight, and experience, you can ensure that you benefit and achieve the best possible price and service.
Case Study:
Buying Property Abroad
Overseas Property Purchase Case Study
This case study explores the problems faced by the Bentley Family who were buying a property abroad.
After finding their dream home in Portugal, the Bentley family had agreed on a price of 300,000 Euros with the sellers. The exchange rate offered by their bank was 1.06 Euros to the Pound, which meant that their property was costing them £283,018. They felt that the rate was quite low and the GBP price was too expensive, so they decided to consider their options.
The Bentleys came to Newbridge Foreign Exchange and we looked at their problem. It was clear that the exchange rate offered was not the best possible rate. It is common for banks to apply a high margin to the exchange rate which means the client can overpay. Using our expertise, we were able to achieve a more competitive rate of 1.11 Euros and that meant the cost of their property had dropped to £270,270. In this instance, the Bentleys immediately sent the funds to the sellers’ solicitors, yet if they were not in a position to do so then we could have booked them a forward contract to ensure the exchange rate, and the extra saving of £12,748, was secure until the completion date.
Newbridge Foreign Exchange were able to help the Bentleys to make a significant saving when buying their overseas property. This is because in most cases, a foreign exchange specialist, such as NewbridgeFX, can often offer better rates but also offer options that allow them to fix in rates to ensure that they continue to benefit for an agreed period of time.
Products:
Manage Risk
NewbridgeFX offers a specialist service in the deliverable foreign exchange market, promoting a range of products and services, available online or over the phone. Our products have been designed to meet the needs of our clients. A lot of these products are ways for businesses, and individuals, to manage and mitigate currency risk, and are used frequently during times of increased volatility. Alongside up to date foreign exchange related market news, which works in tandem with our range of products.
Spot Contract
Lock in an exchange rate for immediate onward settlement. Funds can be received the same day.
Forward Contract
Lock in an exchange rate today, but for settlement at a later date that suits you, up to 12 months in the future.
Market Order
We monitor the markets real time and take action to trade between currencies when your desired rate is achieved.
Rate Alerts
Set an alert for phone or email notification when an exchange rate has be achieved to take advantage at the best time.
FAQ:
Forward Contract
Answer
We offer very competitive exchange rates, and will always strive to get you the best rate available in the market.
Answer
This is currency and country dependant. Payments can clear within minutes of processing, yet some more exotic currencies may take 24 hours to clear.
Answer
We can convert over 45 currencies and make payments to over 200 countries worldwide.
Answer
Yes, we have a best in class online platform to convert currencies and process payments. The platform is ISO/IEC 27001:2013 compliant and has robust security in place – see our Security section for further information.
Benefits:
NewbridgeFX
Multi-Currency Account In Your Company Name
Receive funds from your customers in to your own named collection account, using one account number for all currencies, or a local in-country account number still in your company name.
Create And Manage All Your Beneficiaries
Add and manage your beneficiaries, perform bank account validation & verification checks as you enter your beneficiary details & bulk upload multiple beneficiaries via a CSV file.
Make Fast & Secure Payments To Over 200 Countries
Real time Swift and local payments are settled the same day, within minutes (currency/country dependant) and payment tracking capabilities allow you to keep updated on the payment status.
Multi-Currency Balances
Hold multiple currencies and access balance information in supported currencies. Receive, convert, send and move money between your multi-currency accounts without making payments.
Convert Over 45 Currencies, 24/7, Using Multiple Devices
We provide informative, up to date market news, including updates on currency movements, upcoming economic events and announcements that can impact the foreign exchange market.
Real-time Reporting And Tracking
View and track all conversions, payments and incoming funds using our online platform and receive email notifications when funds received, conversions processed and payments released.