From small technology start-ups to large international banks, businesses have been using outsourcing to provide efficiency and improve the bottom line for years. Using a web agency or outsourcing to a customer services function based in another country and paying them with an international business money transfer, can offer big cost benefits - benefits which can be further amplified by any positive improvement in exchange rates.
How has Brexit impacted the pound?
However, sterling has been weaker against most major currencies since the vote to leave the EU in June 2016. And with Brexit negotiations creating all manner of uncertainty, it could be another bumpy year ahead for the pound. While this is unlikely to dissuade many from outsourcing overseas, it potentially increases the currency risk involved with international outsourcing as adverse exchange rate movements can easily turn a cost saving into a financial burden. Fortunately, there are a number of tools available to mitigate some of these risks.
Benefits of foreign exchange specialist
Using a foreign exchange specialist can provide businesses with access to different tools that can help plan ahead. You could lock in a prevailing exchange rate for up to two years by taking advantage of a strategy commonly referred to as a ‘forward contract’ for example (forward contracts may require a deposit). You might also decide to ask your provider to notify you if an exchange rate hits a rate that suits you, or place what is known as a ‘market order’, whereby if the rate that you are looking for is reached a deal is automatically booked on your behalf.
Getting a competitive rate
Another important factor in making sure you get a good deal when transacting abroad is around the competitiveness of the exchange rates. In the same way that insurance providers differ in terms of competitiveness, the exchange rates offered by some currency providers are more competitive than others – and on settling large outsourcing bills this can make a big difference to the bottom line.
Remove hassle from international payments
We have joined forces with foreign exchange specialist moneycorp, to bring our business readers Telegraph International Money Transfers. With moneycorp, Telegraph readers get access to great exchange rates and fee-free transfers. moneycorp’s account managers are also on hand to provide expert business currency market guidance, so you can arrange to protect against foreign exchange movements or even lock in more favourable rates. Plus, the service can take the hassle out of settling regular international payments. The service also gives your business its own account and enables you to do everything online: that’s buy or sell currency, carry out transfers and manage your payments anytime, with a click of a button (or swipe of a tablet).
Get the best exchange rates and fee-free transfers with Telegraph’s International Business Money Transfers service.
moneycorp is a trading name of TTT Moneycorp Ltd which is authorised by the Financial Conduct Authority under the Payment Service Regulations 2017 (reference number 308919) for the provision of payment services.
The above article was created for Telegraph Financial Solutions, a member of The Telegraph Media Group. For more information on Telegraph Financial Solutions click here.