A business is run to be profitable. How many times we question the exchange rates given by banks? This leads to losses of hundreds of dollars on each transaction. Most firms and companies are blissfully unaware that they are leaking profits.
Why pay more? Is that not a key element when doing business. Foreign exchange is no exception.
A simple way is to use the assistance of an expert in this field to track rates, negotiate with banks and pay the least spread on your foreign exchange conversion.
A saving of 20 paisa on a transaction of 10,000 dollars saves you Rs 2000/-
Turn over of 5 crores increase profit by 2.22 lakhs. Turn over of 10 crores a profit increase of 4.44 lakhs and Turnover of 50 crores a profit increase of 22.22 lakhs.
The above table shows potential savings achievable on taking a small step in managing your foreign exchange. However diverting from your core business strength is not the way to go about this. Empanel an expert to assist you and increase profits, while you were wondering all the time where the profits went.
About the author: Dominic Christy a professional banker for over 20 years with expertise in Foreign exchange and Treasury Management and a well-rounded experience in project finance and banking laws. He has established a firm DAC Consulting to provide professional and timely advise to firms and corporate's. For a free consult, write to firstname.lastname@example.org. The author invites requests from readers to suggest topic they may wish to have clarity on.
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