Recruitment firm Michael Page has seen third quarter profit growth fall from 11.6% to 4.7% after taking into account sterling strength against the euro. Carl Hasty, Director of international payment specialist Smart Currency Business, offers the following tips for UK recruitment firms to minimise losses and avoid risk when dealing with international payments:
1. Know Your Budget Rate.
Take proactive steps to determine your budget rate when estimating financial forecasts for the year ahead.
2. Understand how currency fluctuations can affect your day-to-day business.
Any losses due to unfavourable currency costs represent funds that could have been used to finance other aspects of your business, from paying for day-to-day operations to funding business growth.
3. Ensure that you are not paying unnecessary charges
Charges like commission fees cost you more on each currency exchange. These are unnecessary and chip away at your bottom line.
4. Ensure that market movements are monitored so that you know when to buy or sell currency.
A currency specialist should be monitoring markets throughout the day. Based on this, they can provide you with the knowledge needed to profit from favourable currency movements.
5. Work with a provider who understands the recruitment industry.
Work with a currency provider who understands the complexity of timescales within the recruitment industry. They should understand that the speed at which deals are made do not necessarily relate to the speed at which payments are made and received – and that these do not correspond to the speed at which currency exchange rates can fluctuate.
6. Know your options
Different currency purchasing strategies apply to different industries, companies and circumstances. Research your options and seek expert guidance in order to make a suitable choice.