Challenge
Manage foreign exchange exposure with certainty over GBP / EUR rates, without impacting on cashflow
A UK Company purchased machinery from the Germany, requiring stage payments in Euros over 12 months, totalling almost €500,000.
The manufacturer required staged Euro payments at various stages of manufacture. Manufacturer also required transport costs to be paid in advance.
Solution
Moneycorp Network
An account was opened with Moneycorp, without any account opening fees and a dedicated dealing manager was allocated. A forward hedging line was approved with the full amount not required up front.
GBP / EUR trades agreed amounts were purchased for required dates. 5-day period to settle invoice.
Supplier bank details input for future payments with no payment fees.
The Result
- Managed foreign exchange risk with significant exchange & cost savings
- Euros purchased for future payments with certainty of exchange rates
- Control over GBP / EUR exchange rate
- Significant FX savings
- Significantly reduced transaction costs
- Managed cashflow
- Managed FX risk / exposure
- Strengthened supplier relationship