In today’s interconnected world, the ability to trade across borders is not just an advantage; it’s a necessity for businesses looking to thrive. For UK-based exporters, navigating the complexities of international trade can be challenging, especially when dealing with multiple currencies.
This is where a multi-currency account, particularly one offered by Equals Money, becomes a game-changer. In this post, we’ll explore the numerous benefits of a multi-currency account for exporters and why Equals Money should be your go-to choice.
Ease of doing business: A multi-currency account simplifies the process of dealing with different currencies. Instead of opening separate bank accounts in each country you trade with, a single multi-currency account allows you to receive, manage, and pay out funds in multiple currencies. This consolidation streamlines your financial operations and reduces administrative burdens.
Cost-effective solutions: Exchange rate fluctuations can significantly impact your profits. A multi-currency account helps mitigate this risk. By holding funds in various currencies, you can choose the most opportune time to convert money, taking advantage of favourable exchange rates. Equals Money offers competitive rates, allowing you to get the most out of each transfer.
Faster payments and receipts: Timing is crucial in international trade. Multi-currency accounts enable quicker cross-border transactions, ensuring that payments to suppliers and receipts from customers are prompt. This speed of transaction, supported by Equals Money’s efficient platform, enhances your cash flow and operational efficiency.
Hedging against currency fluctuations: The foreign exchange market is volatile. A multi-currency account allows you to hedge against currency risks. By keeping money in different currencies, you can protect yourself from unfavourable exchange rate movements. Additionally, Equals Money's account offers in-platform payment solutions such as forward contracts, allowing you to fix a favourable exchange rate for a future transfer, safeguarding transfers from fluctuating markets.1
Although, should the rate continue to move after the contract has been booked, you’ll still receive the original agreed exchange rate, presenting a potential disadvantage in choosing a forward contract. However, many looking to make large international transfers find the stability offered by a forward contract outweighs this disadvantage.
Improved financial planning: Knowing your costs and revenue in different currencies upfront, aids in more accurate financial planning. A multi-currency account with Equals Money provides clear insights into your financials in different currencies, helping in making informed business decisions.
Attracting more customers: Offering pricing in a customer’s local currency can be a significant advantage. It makes your products more appealing to international customers, as it removes the hassle of currency conversion for them. A multi-currency account enables this flexibility, potentially increasing your customer base.
Expanding global reach: With the ability to easily manage finances in multiple currencies, you can explore new markets with less financial friction. Equals Money’s multi-currency account is designed to support your global expansion plans by simplifying international transactions.
Dedicated support and expertise: Equals Money stands out with its dedicated customer support and expertise in foreign exchange. They understand the unique challenges faced by exporters and provide tailored solutions to meet your specific needs.
Advanced technology: Equals Money offers an easy-to-use platform that integrates seamlessly with your existing financial systems like Xero, making the management of your multi-currency account straightforward and efficient.
Safeguarding: Protection of your finances is paramount. Equals Money protects customer funds via safeguarding, holding them in specially designated safeguarded bank accounts, separate from other assets.2
For exporters, the ability to efficiently manage multiple currencies is not just convenience, but a necessity. A multi-currency account with Equals Money offers a plethora of benefits – from the ability to manage funds in multiple currencies at once to enhanced global trade opportunities.
Embrace the future of international trade with Equals Money, where managing multiple currencies is simplified, secure, and beneficial for your business growth.
1Equals Money can only offer forward contracts to facilitate payments for goods and services.
2Equals Money accounts don’t fall under FSCS. Please visit the Equals Money website for more details.
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