Eliminate the threat from volatile exchange rates.
Here’s what you get
Suitable if you
- Carry out any trade across international borders
- Purchase assets, goods or services from foreign suppliers
- Are experiencing short-term cash flow restrictions
- Customarily deal in UK sterling
- Trade in an industry where a foreign currency dominates
- Wish to mitigate the effects of exchange rate volatility
BENEFITS FOR YOUR BUSINESS
Risk Management
Spotting imminent currency turmoil is difficult, but anticipating its possible sources and extent is the key to greater security. Hedging strategies are bespoke solutions, aligned with the operational and financial factors that make every business unique. Who you trade with, where you trade and how you trade are essential questions in planning ways to limit your corporate foreign exchange exposure.
Spot Contracts
Three main options are available which, in combination, can be used to create an effective hedging strategy. Spot contracts are a means of buying or selling currency at live rates which can be used in instantaneous transfers, thereby removing the risk inherent in long lead times.
Forward Contracts and Currency Options
Forward contracts are agreements which allow you to reserve the exchange rate that obtains on the day of the transaction so the same rate can be used in the future. Currency option contracts give you the right to buy or sell a particular currency at an agreed rate on the maturity of the option.
HOW IT WORKS
Risk Analysis
Stellar Capital works with partners who have the expertise and technological resources to analyse the extent of your risk, devise strategies to manage that risk and thereby limit your exposure, save you money and maintain the confidence of foreign investors.
Inspecting Your Business Model
We will study your business model, your investment streams and your partnerships to identify each and every vulnerability in your cross-border trading arrangements.
Advice on Solutions
Once we have gathered all the information available, we will advise you on all potential threats and start to work with you to shore up the gaps in your defences.
Ongoing Support
A smart combination of products gives you several layers of protection. We keep these measures under constant review to ensure you are in the best place to take advantage of business foreign exchange movements instead of becoming a victim of its volatility.
FOREIGN EXCHANGE RISK MANAGEMENT HIGHLIGHTS
- Contact Stellar Capital for a full audit and risk assessment
- We study your business model, exchange facilities and trading partnerships
- We identify all potential weaknesses
- We advise you on appropriate mitigating measures
- You continue to trade with overseas partners with full foreign exchange protection
OTHER OPTIONS FOR YOUR BUSINESS
Foreign Exchange
Trading in the foreign exchange markets is a specialised business and does not fit easily into the normal routine of business management. Our understanding of the foreign exchange market is comprehensive. We identify solutions to make your experience of international trade easier and less costly. We also ensure that every step of the process is executed with complete transparency.
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Export Finance
We connect you with a team of experienced professionals who know their way around every aspect of export finance, overseas trading, international shipping terms and foreign jurisdictions. They take the time to understand your business and devise solutions specific to your needs, ensuring the best cashflow outcome to keep your business moving forward.
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Foreign Exchange for Buying Property Abroad
The most widely used method to avoid serious losses on major property purchases is the forward contract. It is an agreement between the parties to fix the exchange rate at its current rate or at an agreed rate for the entire length of the transaction process. Whatever happens in the currency market, this FX hedging approach removes your purchase from that market and freezes it so that the amount you pay in your home currency cannot change.