Most small businesses who trade internationally take currency swings as a fact of life. They go about trading with their suppliers and buyers in foreign markets and convert currencies whenever they process foreign payments or collections. If exchange rates move between the time when orders are placed and invoices are paid, the resulting amounts in one’s home currency fluctuate, impacting profits and cashflows.
These effects are relatively small most of the time and businesses see no need to think about protecting their cashflows from currency effects. In fact, such concerns usually come as an afterthought - after a large surprise currency move that has wiped out one's profit margins or led to an expectedly low cash balance. Traditionally, this is a point where many businesses would typically decide to focus some of their attention on the problem - often too little, too late.
We have seen this pattern repeating itself with every burst of market turbulence for decades, with a new flock of aspiring businesses learning expensive lessons about the perils of international trade. In the long run, this handicaps small businesses when they compete with their larger peers such as multinational corporations, who have more experience, support and resources to avoid these risks and thus can continue to outpace their smaller peers.
HedgeFlows was founded because we saw no solution being fit for helping budding businesses protect their profit margins without additional time and costs.
Our platform is the simplest way for any business to move from processing currency payments to simply turning their future payables and receivables into home currency, thus removing any future currency effects. Once you integrate HedgeFlows with your accounting system (such as Sage or Xero) or import an Excel file with future currency invoices, you can prebook today’s exchange rates with a simple click - turning a foreign currency invoice into a set amount in Pounds Sterling. The only thing left is to pay the set amount in Pounds Sterling whenever you are ready and the right amount in foreign currency is on its way.
If you would like to discuss protecting your business from currency swings with our team please drop us a note to email@example.com or book a demo: