International business from home

Handling finances for international business

Today’s sponsored post by Interchange FX

looks at saving money

on international business transactions.

The internet has revolutionised the way in which we work, and this is never truer than when you consider the advantages and opportunities that it brings to those who work from home.

Being able to reach out to the world from the comfort of your own home office brings with it considerable benefits. It’s hard to imagine a world without the plethora of online resources which we now rely on.

It has never been so easy to grow a successful international business, and thanks to the wonders of facilities such as video conferencing, email and the like, the world is becoming a smaller place. Even those who work from home are no longer confined to conducting their business on a local scale.

If you work from home but run an international business then there are some factors that you will need to consider. Possibly the most important one is how you handle your financial affairs.

Many people employ the services of a currency broker in order to get access to the best currency exchange rates but you need to consider the idea of fixed term forward contracts.

These allow you to fix your rates at a known level of Pounds Sterling for up to a year in advance, meaning you simply won’t be affected by fluctuations in the economy.

This makes your business forecasting a whole lot easier to complete, as no matter which currency you are dealing with, you know the exact figure in Pounds Sterling for your financial records.

If you have long-term overseas payment commitments then it is well worth taking some time to consider the best way to honour them without falling victim to fluctuations in the exchange rate, and forward rates can really help with this.

You also stand to save a lot of money if you utilise forward rates in order to transfer money into an international bank account, as you will have access to the best possible rates.

Using a currency broker who can find you the best fixed term forward contracts is a very sensible idea. They will work alongside you to ensure that your business is insured against fluctuations in the exchange rates. This offers considerable peace of mind when it comes to planning ahead.

If you conduct a lot of international business then it’s critical that you pay attention to the issue of currency exchange because it has such a huge impact on your bottom line.