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How to save money and reduce risk when trading internationally

12 December 2018 No Comment

These days there are many businesses that choose to trade internationally so that they can grow their business and build their brand awareness worldwide.  No matter which type of business you are running, international trade can be an important step to take to help you grow. With Brexit currently in progress there is an increased uncertainty for businesses over possible increased costs for international trade.

When trading overseas it is therefore important that as a business owner you are able to reduce your international trading costs and reduce the overall risk of trading internationally as well. As banks have high transaction costs, it is best to use currency specialists, hedging, and multi-currency accounts to help keep your costs down.

To find out more about how your business can reduce costs and have a more effective international trading process, here are a few tips that can prove useful to you and your business:

Tip 1 – Use a Currency Specialist To Make International Payments

One useful tip for international trading is using a currency specialist to help you process your payments easily. By working with professional financial companies instead of with a bank you will be able to get a better rate on international payments for your business. Whether you are paying suppliers, or paying salaries, currency specialists can help you process whichever international payments you want to process.

Instead of using banks that have high rates and fees, using a good currency specialist can help you to save money in the long run. Using expert currency advisors are a better option for your international business payments as banks typically charge higher fees and are often not as transparent about their hidden costs and charges. Whether you are making a few international payments or many, currency specialists a better option to use than banks as they are transparent about their costs and can help you save money for your business.

Specialist currency advisors can help advise you on international trading for your business and help you make international payments. Whether you need to make payments, transfer money, or exchange currency, financial experts can help you along the way. If you want some further information on how your business can save money on international business trading, then take a look at this guide on The Easiest Way For SMEs To Save Money In International Trade.

Tip 2 – Use Hedging To Reduce Risk & Lock In The Best Exchange Rate

Another useful way that you can reduce costs when doing international business is by hedging currency trades. Hedging can help you to manage and reduce your risks and also help you to lock in the best exchange rate. When running international trade in your business it is useful to know what your costs are so that you can plan and forecast for the future accordingly. By buying currency at a favourable exchange rate you will therefore be able to do this.

With Brexit currently taking place it is now more important than ever to ensure that you reduce your international business risks and plan ahead for the future of your business. A good outcome for both parties can be difficult when the exchange rate starts to fluctuate. Planning well in advance can help you receive the outcome that you want to achieve. Hedging can help contribute towards achieving a satisfactory transaction outcome for both your business and other parties involved.

Tip 3 – Use a Multi-Currency Account To Collect Payments

One final tip to help you reduce international business costs is by using a multi-currency account to help you collect business payments. Whether you are issuing invoices to overseas clients or taking consumer payments abroad, using a multi-currency account can help you save money in the long run. With excellent exchange rates, a multi-currency account can help you manage and process multiple payments across multiple countries quicker, easier, and cheaper than using a bank.

When using a bank to help with your international payments, you may end up paying a higher rate and often your final cost is unknown until the transaction is being processed. Using a financial specialist for a multi-currency account instead of a bank is a better way for you to save money for your business. By using good currency specialists you will be able to both reduce risks and save money for your business when trading internationally.

If you are looking for cost effective ways to trade internationally then these useful tips can help you and your business. With Brexit currently underway, the whole process may cause uncertainty in currency exchange markets. Using financial experts and specialist currency companies can help you to save money and reduce risks when you and your business are trading internationally.

The Currency Account are an FCA authorised financial company in the United Kingdom. If you would like to learn more about international money transfers, currency exchange and much more, The Currency Account are here to help you with all your financial needs.

 

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