Friday, 11 September 2015

Paying through the nose

Most companies pay far too much for their foreign exchange transactions.

Why?

Here are a selection of reasons one, some or all of which normally apply

  • Not a deep enough understanding of the market generally
  • Finance managers too busy with other stuff, fire fighting etc
  • Lack of awareness of 'hidden' FX flows in their cash management area
  • Only care about single large deals or hedging activty
  • Unaware of what the whole market (thousands of banks and non-bank providers) can actually offer
  • Never really analysed their FX activity top to bottom (especially true the larger the company is)

Amazingly, companies every day commit to huge FX deals without knowing the price (FX rate and margin taken) up front. 

Think about that for a second

That's like you or I agreeing to buy a house, exchanging contracts and completing, BEFORE knowing the price!

Despite these facts, most corporate treasurers are completely in the dark about how much money this is costing them.

betterFX (www.betterfx.co.uk) is here to help - visit  the website and find out more




No comments:

Post a Comment