BLOG: General Business Payments Abroad
Many businesses have a desire to move into new markets as they look to expand, and this causes many to move their business abroad, open overseas subsidiaries, or make business payments to suppliers abroad. Whatever the need, making general business payments abroad requires careful planning and professional guidance and advice.
Despite this, for every business, it’s imperative that its money works as hard as possible. Therefore, when it comes to making business payments abroad, you have to identify the right opportunities and make informed decisions based on the current market situation, but this does not come without its challenges.
Facing The Challenges of Making Business Payments Abroad
Businesses might make international payments for a number of reasons but there are many things to consider and this includes tax issues, managing multiple currencies and even making the payments. Therefore, businesses should consider ways in which they can mitigate risks in relation to currency and market volatility.
For many businesses, thinking globally and operating abroad whether that is having a position in certain markets or dealing with suppliers, they can often find that they are penalised when it comes to making business payments.
Despite this, making overseas business payments can be streamlined and well-managed when you have the support of a Foreign Exchange specialist. If you have regular payments and contracts then they can help to implement spot contracts that ensure you lock in and secure an exchange rate, or you can opt to use forward contracts that allow you to fix the exchange rate for up to 12 months.
What’s more, it also important that businesses monitor markets in real-time as a way of ensuring they take action at the right time. This enables them to make business payments at the right time, allowing them to take advantage of strong exchange rates.
However, businesses are often hit with high fees when making payments via banks as they can often find that they are hit with hidden fees that are estimated to cost around £4bn each year, and this is all down to them offering poor exchange rates. Commonly, the full cost of making business payments abroad isn’t visible until the transaction is made as there is no transparency over the exchange rate when the money is converted.
However, this is a problem that can be avoided by using a Foreign Exchange specialist such as NewbridgeFX. We can keep you up-to-date on the foreign exchange market with rate alerts and market news, and also by providing expert advice that enable you to gain clarity over the exchange rates offered, and how they work for you, enabling you to take advantage at the right time.
Along with all of this, there are other things to consider when making business payments such as the market activity and how it is influenced by factors such as political events and data announcements, all reported in our daily market news section.
What’s especially important is to plan ahead and this is something that can be done with the right assistance. By engaging with NewbridgeFX, you will be guided by reliable information and honesty, enabling you to make moves at the right time.