Reduce Company Expenses
"Why are so many companies considering the move from the UK to other parts of Europe? The answer is simple, corporate tax. Elsewhere in Europe corporate tax rates and the company tax regime are much more company friendly than here in the UK and as such it makes sense to reduce this “cost” and keep more money in the business for the benefit of all stakeholders.
So why do companies continue to use their bank when it comes to paying or receiving foreign currency? The same logic should apply. Costs could be reduced considerably for the benefit of all stakeholders by using a specialist currency exchange company.
Specialists focus on international transfers only which allows them to maximise the benefits to their clients; better exchange rates, clear pricing, minimal add on costs [in fact in most instances specialists eliminate ‘extras’] and regular updates on the market. Cost savings can run into £10,000’s each year.
Currency exchange specialists develop relationships with clients and focus on developing an in-house expertise on their currency needs. They aim to focus discussions on what is happening to their key trading currencies and how they will affect their business. I’ve had many clients buy €’s and US$’s forward [this is where the organisation secures an agreed exchange rate for their currency requirements into the future] when sterling continued to flounder throughout 2008.
So a bit like those companies who are considering a more benign corporate tax regime with the aim of reducing excessive tax costs, a company with extensive foreign currency needs should be working out how to reduce their significant and often hidden exchange costs. The best way to do this is with a specialist currency company where they understand business and currency."
Charles Purdy is a director of Smart Currency Exchange Limited. Check out www.SmartCurrencyBusiness.com for more information.