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Overseas funding can be used to expand your business by diversifying your funding and working with a larger range of investors. Companies may also use overseas funding as the foreign country has investors with experience that they need, or if that is where the main market for their product is.
If your business buys or sells goods outside of the UK, or if you’re regularly competing in currency trades, it’s important that you do so via a secure and appropriate service that delivers value for money, or fees can quickly add up and eat into your profit.
What you may not realise, however, is that while relying on your bank for currency trades might be convenient, you are likely to be spending more than you need to.
Foreign exchange is the conversion of one currency to another, and the foreign exchange market is a global marketplace that is used for converting currencies to their current values. This is based on supply and demand, so it’s important to be aware that this can be subject to constant change.
Foreign exchange providers specialise in international transfer of currency, and Bluestone has established relationships with several of the UK's leading providers to aid businesses in their foreign currency trades and overseas funding. If your business is regularly completing currency deals, it is important to understand what a specialist FX provider can do for you.
There are several benefits to using a specialist FX provider rather than your bank.
Banks operate at the ‘mid-market’ rate when doing currency trades, which means you will almost always be paying more than the market rate, ultimately reducing your profit. Typically, a specialist FX provider will offer rates 2 to 3% lower than a bank. Furthermore, banks also charge additional fees which may occur per trade or be worked into the exchange rate.
FX providers are committed to working with your business and understanding the challenges that are specific to you. This means that the advice they provide you with has been tailored to your needs and the issues you may be facing. This contrasts with banks as often you may find that they do not work with you as closely.
Since FX providers work much more closely with you, the service provided will often be faster and more transparent than that you would receive from a bank. An FX provider will ensure that the advice and service provided is bespoke and relevant, meaning that they are more responsive to changes in what is often a volatile market.
Bluestone has established relationships with several of the UK’s leading foreign currency exchange specialists to ensure you get the best rates for your business. We ensure that you and your business operations are being met with the expertise to receive a bespoke service.
If you have not been successful in securing domestic funding, overseas funding does offer you a potential capital source. Overseas funding gives you the chance to put yourself in front of a new market that you may not have had access to in the past.
Ultimately while overseas funding can be a great opportunity to raise capital, it does come with its own risks. This is why working with a specialist FX funder who will take all your concerns into consideration and work closely with you can be beneficial.
Whether you prefer to manage your own trades via an online portal, or would prefer more support and guidance, or whether you’re making a one-off currency trade or need regular support, we can recommend an FX provider that’s right for you.
Bluestone is an ethical and FCA-regulated finance intermediary. We are committed to ensuring that our clients make informed financial decisions based on their requirements and always recommend that our clients seek independent financial advice from an authorised source before committing to any financial agreements.
If you would like to explore foreign exchange trading or overseas funding solutions in more detail, get in touch using the enquiry form below. One of our friendly and experienced team will be in touch as soon as possible.
Last updated November 2024 Version BS.202411.01BL49
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