Foreign invoices and receipts in Pound Sterling
Send invoices in Pounds Sterling, get paid by overseas customers in their currency, and forget about messy reconciliations.
WHY KEEPING EVERYTHING IN £ MAKES SENSE
Small businesses that sell to B2B customers overseas have difficult choices in how they get paid. Many go for the simple option - only deal with customers who can pay in Pounds Sterling. Take it or leave it. Those for whom foreign markets are important will accept payments in foreign currencies, which traditionally brings additional costs and accounting burdens.
Invoicing and getting paid in Pounds Sterling has the advantage of not having to deal with exchange rate risk. However, in many cases, customers from abroad may prefer to pay in their own currency. Businesses that find themselves in this situation can hedge against currency risk by securing their exchange rates in advance. This pre-booking process locks the current exchange rate so they can use it in future when the invoices or collections are due. The advantage is clear: if the rate moves against you while you're waiting for payment, you won't lose.
Currency moves can have an impact on your cashflows. Removing this uncertainty from your finances is key to avoid unnecessary surprises. Thanks to new solutions, small businesses can finally square the circle - invoice customers in Pounds Sterling and get paid in foreign currency without introducing unnecessary currency costs and messy reconciliations.
SIMPLIFYING YOUR FOREIGN TRANSACTIONS
Integrating HedgeFlows with Xero, Sage50 or Quickbooks makes it easy to fix exchange rates for specific invoices when you quote or invoice your foreign customers. Once HedgeFlows is connected to your accounting system, you can simplify and save on your foreign receipts in four easy steps:
- Simply prepare an invoice for your overseas customer in Pounds Sterling,
- Fix exchange rates for a specific Amount in GBP due on a future date and get the equivalent Amount Due in foreign currency to include on your invoice,
- Get paid by customers in their currency into your HedgeFlows multi-currency IBAN,
- Convert it at the pre-booked rate and get the right amount in Pounds Sterling!
Letting your European or American customers pay in their currency will also save you time and money on payments. Local transfers are processed faster (usually on the same day), and once converted, your Pounds can be with you the same day. HedgeFlows offers competitive exchange rates, and now you can offer also offer it to your own customers.
WRAPPING UP
Although selling to foreign customers can seem complex, the reality is that it shouldn't be. At HedgeFlows we believe in simple foreign transactions, and our tool aims to make this a reality for small businesses. If you're unsure on what to do next when it comes to foreign payments and collections, talk to one of our experts to see the best options and solutions available to you:
Say hi via email hello@hedgeflows.com, or chat with us, we're online!.