By Phillip Silitschanu
Making international payments has traditionally been a time and labor intensive process—from calling around to find the best currency exchange rates, sending faxes and emails, and depositing checks, so it was inevitable that a better solution would come along. For any business involved in international trade, whether it is importing or exporting goods or services, or conducting exchange, digital delivery represents significant advantages.
Firms look for new ways to improve every day, and using an online currency exchange platform can help give businesses the tools they need to improve payment flows. The most important benefit of utilizing an online currency exchange is the competitive advantage it gives the business, by affording it greater security in its currency exchange transactions, as well as efficiency and cost.
Online currency exchange programs provide secure, centralized, easy to use online interfaces. These online interfaces can be used to view and sort all account transfers and FX currency exchanges, in one place. This makes it easier to keep tabs on what transfers have been made, to or from whom, and when—so that missing (or duplicate) payments are easily spotted. And , by centralizing all transfers and currency exchanges in one easy to use platform, businesses can save time and money, increase efficiency and lower costs.1 There are other benefits to using an online currency exchange: less paperwork to fill out, not having to stand in line at a bank, and not having to physically carry large amounts of cash.
Additionally, it is important to select a secure and reliable method for international money transfers and currency exchanges—and that is found by using a reputable and well established foreign currency and international payments provider. Using an online currency exchange program helps set up Online Rate Alerts, which are activated when a pre-set currency exchange rate target is reached so that the currency exchange is made at the optimal time. All it takes are a few clicks to capitalize on that Rate Alert, rather than the time consuming traditional process where an advantage can be lost. But making a currency exchange at the right time is more than just about saving time: it can help the business save money. Taking advantage of a favorable shift in currency exchange rates can allow businesses to repatriate foreign payments at a rate that can further boost profits..
Today, there is virtually no company that is not conducting business across borders. The opportunities are innumerable, but the greatest ones are: being able to obtain parts, supplies, and services at a lower cost than can be had locally; and, tapping into a new market of customers who are eager to do business globally. There are opportunities in the established markets, as well as in the emerging markets2. With the spread of the internet to even the most remote cities and towns in the world’s emerging markets, it has become nearly as easy to find a buyer, or supplier, half way around the world as it is across town.
Yet, businesses still need to deal with hurdles like getting the payment to or from one place to another, often dealing with paper work, long delays, and uncertainty about the current currency exchange rates — and the availability of a fair currency exchange rate. Some of those hurdles may now be ameliorated with the online currency exchange process.
Using an online currency exchange program makes it easy to send and receive funds, and running a business simpler.
Phillip Silitschanu is the founder of Lightship Strategies Consulting LLC, and CustomWhitePapers.com. Phillip has nearly 20 years as a thought leader and strategy consultant in global capital markets and financial services, and has authored numerous market analysis reports, as well as co-authoring Multi-Manager Funds: Long Only Strategies. He has also been quoted in the U.S. Financial Times, Wall Street Journal, Barron's, BusinessWeek, CNBC, and numerous other publications. Phillip holds a B.S.in finance from Boston University, a J.D. in law from Stetson University College of Law, and an M.B.A. from Babson College.
1. Improving Operational Efficiencies Through a Centralized Data-Management Approach, Information Week Wall Street & Technology. April 12, 2004. http://www.wallstreetandtech.com/improving-operational-efficiencies-through-a-centralized-data-management-approach/d/d-id/1256450?; see also: 3 Ways to Make Your Business More Efficient, Entrepreneur, October 22, 2013. http://www.entrepreneur.com/article/229557.
2. For additional information on opportunities in emerging markets, see the American Express FX International Payments Articles for Business: Global Trade & Financing In Asia. https://www.americanexpress.com/au/content/foreign-exchange/articles/business/.