Today, many UK SME corporate importers are facing challenging times due to exchange rate fluctuations driving the cost of importing goods in USD up substantially.
Ok, so importers have seen the cost of a USDollar increase by around 20% in the past 20mnths and in the past few weeks has moved well below the all important 1.5000 threshold. Many owners, FDs and MDs have traditionally used 1.5000 as a floor or budget rate when pricing and negotiating contracts. This has sparked alarm and has been widely publicised.
We are not only assisting our current clients through these challenges but are now extending our services to any business directors affected who would appreciate a conversation or meet with one of our specialist team.
The stark reality is that whilst many company owners/leaders will see profit margins reduced due to this, they will consider re-pricing, re-negotiate, re- sourcing goods. These are all best practices when faced with these current challenges to protect your business.
However, in actual fact , what we have found through over 10 years experience, is that the smartest first step is what most continue to ignore or dismiss. This should be to contact a trusted Global Payments specialistand have a real conversation to take stock and understand your company FX position and circumstances in full. This will be the start of a more strategic longer term view and attitude which will serve your business well going forward and be beneficial on many levels.
By doing this you have access to discuss what products and services are available to make things more cost effective, streamlined and risk adverse going forward. Basically put, fitting a solution around your finance function rather than the other way about that most seem to accept with a default bank facility. Sure, minimising immediate pain through sharper rates, on-line payment platform, quicker delivery, easier processing is all good and well and a start point. Most important though, is going forward with some form plan and efficient system that compliments your business as it deserves.