SMEs often need to make cross-border payments, so having a foreign currency strategy in place is important. Read on to find out why SMEs are choosing brokers over traditional banks and how an effective currency strategy can help protect your business’s bottom line.
What can a Currency Broker Offer?
One of the most important factors for SMEs considering an FX provider is the exchange rate on offer. Brokers like Evolve Currency Management can offer competitive exchange rates and have a proactive approach to FX management. That means we’re here to help you protect your bottom line as well as take advantage of market movements in your favor. Importantly, an FX broker is a specialist who focuses solely on the currency market, rather than offering foreign exchange as just a branch of their services, so you have industry experts on hand. Speaking to a broker means you can implement a currency strategy in line with your specific business goals and FX requirements. Contact us for a free FX review to see how we could help your business.
Can a Currency Broker Help my SME with FX Hedging?
As an SME, you might face the risk of currency fluctuations and what they mean for your bottom line. By utilizing a broker for your FX requirements, you have access to our team with a wealth of market expertize who watch the market all day. Because we focus on the FX market, we can help you lock in a rate when the market fluctuates in your favor.
We can offer a hedging product called a forward contract to fix an exchange rate in place for up to 12 months to help you plan for future transactions. As part of your currency strategy, a forward contract can help to protect your profit margins by shielding your business from adverse market movements*. A forward contract can also help with cash flows and budgeting effectively.
How does an FX Broker Help Protect my Bottom Line?
Mitigating currency volatility, particularly when transacting in volatile currencies, is crucial. Depending on your FX requirements, you may find some exchange rates fluctuate more significantly than others, so having expert insight into the market can be highly beneficial when making FX decisions. SMEs can benefit from our expert guidance to work with their finance teams to mitigate currency volatility. We’re here to help your SME plan effectively with flexible and tailored solutions.
If you’d like a free FX review, or have questions about how we could help your business with its foreign currency requirements, please get in touch.
*Note—a rate can fluctuate higher or lower, but a forward contract gives you certainty for your future FX transactions.