As the CFO, Controller, Accountant or Finance Director at your company you are undoubtedly on the lookout for ways to protect the bottom line from erosion and, or, ways to increase profit.

Let us throw a question to you:

Are you adhering to global payment best practices and paying your international vendors in their currency?

If YES, then that’s a solid start and there’s more you can do. If NO, then fear not, you’re in for some significant savings if you decide to read on.

Next question:

Did you know that a bank’s mark-up on FX is often quite high?

We know, because we’re former bankers. Yep, we were part of the problem.

By using a specialized FX Payments company, like GreenShootsFX, and not your bank, more often than not you’ll be able to lower the value paid in your home-currency and all the while your vendor still receives the value they invoiced you.

We see a typical saving in the range of 1.5 to 2.5% so on average that’s $2,000 for every $100k converted.

The %age might not sound very much but we had an experience with a U.S. based company who were importing from Europe and they were selling roughly $5 million per month using a reputable top-tier U.S. bank to buy euro.

In summary, they were able to reduce their annual vendor payments by $900,000. What would you do with your reduction?

• Pay shareholders
• Increase employee compensation & benefits
• Hire new employees
• Upgrade systems and platforms
• New machinery
• Monster sized office party

Paying your global vendors in their currency often means you’re avoiding the 5% padding which foreign exporters often have to resort to including in their quoted price if you give them the currency exchange risk, which increases for them if they are selling on longer terms.

And, they calculated the initial dollar value using the already inflated, and thus poor, indicative FX rate provided by their bank.

Did you know when you pay U.S. dollars 95% of the time it will result in a conversion to your vendor’s currency, by the foreign bank, and your vendors will not want the ensuing exchange to convert to a lower-than-expected local currency value.

This is why paying in foreign currency is considered to be best practices because it removes the ‘padding’.

For those of you who presently pay in your home currency we encourage you to take the GreenShootsFX 20-Second-Challenge. When you next order from your vendor and ask for a price, take the extra 20 seconds and ask them for a bid in their currency as well.

Almost every time you’ll be given both. And you’ll be allowed to pay either. You will not be saddled with having to pay only in the foreign currency.

When you receive the currency amount be sure to connect with a specialized FX payments company, even if that’s not us, to ensure you get a really great FX rate.

“But by bringing the FX risk to our organization, how do we manage that?” Well, you are most certainly able to hedge your payables by fixing your exchange rate today but for delivery at some time in the future. This will provide you with a known, guaranteed, home-currency value that you can use in your cash-flow forecasting and planning.

And it doesn’t matter what happens to the exchange rate – you’ll get the rate you initially booked.

Congratulations, you really are a hero!

For more information connect with us at in**@Gr***********.com or visit our website for other helpful intel, testimonials, and how it works.