Make foreign exchange work for you.
We can limit your exposure, manage your foreign trading arrangements, and offer the protection of sophisticated hedging strategies to maximise your investment stream and safeguard profits.
Here’s what you get
Suitable if you
- Buy goods, services, assets and materials from overseas
- Sell goods, services, assets and material to overseas customers
- Have no means of regulating the rates at which you buy and sell
- Deal mostly or exclusively in UK sterling or another single currency
- Trade in an industry where a particular foreign currency dominates
- Believe you are losing money through exchange rate inefficiencies
BENEFITS FOR YOUR BUSINESS
Protection of Profit
Fluctuating exchange rates which rise or fall suddenly could wipe out the profit on a one-off deal and have serious consequences for long-term contracts. An agreed price that involves different currencies does not stay the same, which means a contract drawn up on x terms can easily turn into one executed on y terms.
Range of Providers
All foreign exchange providers are not the same. Choosing the one which offers the best headline rates may mean you neglect the other services they offer which, taken as a whole, deliver wider benefits. Proper risk management will help you to take the wider view.
Objective Assessment
A business can find it hard to make objective assessments of their own position. Stellar Capital’s partners are experienced at taking the root and branch approach to identify every potential weakness and solution. Issues such as administration and compliance can deter a business from making the necessary decisions. A third-party agent can devise workable systems to relieve these management pressures.
HOW IT WORKS
Spot contracts
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
Forward contracts are agreements which allow you to reserve the exchange rate that obtains on the day of the transaction so that the same rate can be used in the future, thus creating certainty for all parties.
Currency Option Contracts
These give you the right to buy or sell a particular currency at an agreed rate on the maturity of the option, but they do not impose any obligation on you to do so. In its simplest form this measure is known as a call option.
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.
FX RISK MANAGEMENT AND HEDGING HIGHLIGHTS
- Talk to Stellar Capital to discuss your exchange rate difficulties
- We connect you with our experienced financial partners
- We will work with them to identify the most appropriate hedging strategy
- We assist you in implementing the hedging arrangements
- Your overseas trade benefits from stability and security
OTHER OPTIONS FOR YOUR BUSINESS
Invoice Factoring
In factoring, a business will sell its invoices to a financial services company such as one of Stellar Capital’s strategic partners, known as a factor. The factor pays most of the value of the invoice immediately – anything from 80-90% – then collects payment directly from the customers of the business. At that point, the factor deducts a service fee and pays the balance to the business.
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Invoice Discounting
Invoice discounting has the same practical effect of giving a business immediate access to the cash value of its invoices. This time, the financial partner advances money against the amounts owed but the crucial difference is that unlike the factor, the finance company does not assume the debt: it remains the responsibility of the business to collect.
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Export Finance
Secure foreign exchange rates that give certainty to your profit margins and cashflow. Eliminate the difficulties of time zones, language barriers and divergent legal systems. Obtain funding in territories not available to competitors.
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Stellar capital is equipped to demonstrate the areas in which your operations can be improved to maximise value and profits.
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Stellar Capital is committed to helping our clients find the best solutions for every funding challenge.
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