Monday, March 10, 2014

Hedging Against Foreign Exchange Fluctuations

Regardless of payment method, keep the international payment process simple. Transacting business in multiple currencies spanning several countries might be beneficial to a big operation interested in hedging against currency fluctuations, but for a small business, if not managed well, it can hurt the bottom line. It’s best to negotiate terms in your country’s currency because fluctuations in foreign exchange markets can significantly impact on a businesses profits.

Further, hedging against foreign exchange fluctuations can be confusing and expensive – particularly for SMEs.  Enter:
Kantox, a peer-to-peer (P2P) platform for business foreign exchange, matches companies who want to buy and sell foreign currency, allowing them to bypass expensive bank and broker fees.
Here's how it works:
... you are a company located in Europe, importing goods from China and paying your Chinese provider in US Dollars. In the Kantox marketplace, you can find another company, located in Europe, exporting goods to the US who has US Dollars to sell in exchange of your Euros.
Learn more:  Helping SMEs deal with fluctuations in foreign exchange markets

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