A UK manufacturer exporting overseas and shipping goods to customers internationally.
Finding a flexible FX strategy to factor in last minute changes in shipping schedules that could affect the profitability of the business. For any UK manufacturer exporting overseas, shipping goods to customers can take weeks and even months. This can cause financial uncertainty as the exchange rate for the payment of the goods can easily change in the time it takes for the goods to arrive. Even the slightest change in the currency rate can lead to profitability being hit.
There was also a need for some flexibility as shipment dates changed. The client's bank was being too reactive in relation to currency movements and did not protect the client's FX exposure.
Global Reach Partners commercial dealer was proactive and provided an innovative approach. The client now has a FX strategy that really does reflect the way it does business. A fixed-rate product, flexible enough to accommodate any movement in the currency markets, enabling the client to manage any business changes, for example changes in shipping and payment schedules.