Remove future foreign exchange risk today.
Greater peace of mind tomorrow.
Let American Express® support you when it comes to dealing with business abroad. Let’s talk about what to think of when you’re considering foreign exchange risk and how American Express has your back, allowing you to concentrate on growing your business.
These questions should be thought about when deciding on how you are going to interact with the foreign exchange market. There are three types of ways to deal with foreign exchange as mentioned below.
This is where you will deal with any payments on a day to day basis going with the current rate which could be in your favour or not.
This enables you to use an agreed amount of foreign currency at the agreed fixed exchange rate to make multiple payments on an exact date within the next 12 months.
These also have a definitive expiry date in the next 12 months but enable you to make multiple payments to different beneficiaries at a fixed exchange rate throughout the duration of the contract.
Help protect your organisation’s margins by securing fixed exchange rates based on current market conditions for future foreign currency payments.
Choose from Fixed or Window Forward Contracts for the specific amount of currency you require.
Avoid getting caught out by foreign currency exchange rate fluctuations.
Book and use forward contracts online as easily as booking standard payments.
Facilitate more accurate budgeting and forecasting. Lock in and use foreign currency at a fixed exchange rate for up to 12 months ahead.
Blend forward contracts with spot payments to take advantage of the best rates.
Organisations that trade internationally are exposed to currency market fluctuations, so it can be difficult to forecast costs accurately.
For example, in 2013, USD ranged from 1.4812 to 1.6577 against GBP. If ABC Ltd. orders 100,000 USD of goods with the rate at 1.6577, the cost is GBP 60,325. If they then pay the invoice when the rate has dropped to 1.4812, their costs have increased more than 10% to GBP 67,513.*
Given this forex volatility, locking in exchange rates using Forward Contracts can help to deliver the peace of mind organisations need to plan and budget.
As a small to medium company/enterprise how can I benefit from forwards contracts?
Forward contracts allow you to avoid currency fluctuations and protect your costed levels when purchasing currency. This means you avoid ever changing profit margins and will allow you to maintain a consistent price of your goods or services to your end customers.
I am a medium to large company/enterprise how will this affect me?
You will be able to maintain a consistent rate of exchange across multiple invoices meaning that budgeting and accounting become easier for your larger organisation.
Can I get support in how forward contracts work?
You can speak with one of our account managers with extensive knowledge of the FX markets and risk management products. Call on 0800 085 3456 to speak with someone directly.
Ready to get started?
We look forward to hearing from you.
Speak to a Specialist: 0800 085 3456, or fill out an interest form:
Learn more about how American Express can help with help with international payment solutions.
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