With manufacturing costs high and margins already slim, it is critical that SMB’s are privy to practices that can be implemented to reduce unnecessary expenses. As the currency markets continue to become more and more volatile, businesses that operate internationally are susceptible to market fluctuations negatively impacting their bottom line. Effectively streamlining the way that your business handles both incoming and outgoing international payments can generate significant cost savings for years to come.
Whether your business sells product overseas or brings in resources from outside the United States, your revenue can be largely affected by the currency markets. Therefore, it is crucial to have a proactive, rather than reactive, approach to international payments. With every movement in the U.S. Dollar, strong or weak, in comparison to countries where you are doing business, your revenues and profit margins are feeling a residual impact.
For example, a strengthening dollar allows you to buy more foreign goods, in turn reducing your import costs. Conversely, a stronger dollar can hurt your international sales as the revenue you generate from overseas will result in fewer dollars when you repatriate those funds back to the United States.
It is common that business owners feel overwhelmed by the thought of navigating the currency markets, and turn a blind eye to the inherent risks that come with not having a model in place to mitigate such risks and exposures. Although we are not able to control the markets, we can still work together to protect your bottom line.
Manufacturing is at the heartbeat of our country and it is important to us that your business is protected against unnecessary fees and expenses. We want to empower you to reduce the costs of doing business internationally, enabling you to re-invest these funds back into your product and operations to accelerate growth.
Our next post will take a closer look at the impact international payments have on your importing costs.
About the Author
GPFX Consultants LLC is a multifaceted international consulting firm based out of San Francisco specializing in the field of foreign exchange. GPFX can work with you to employ a proven cost-reduction solution to your international payment operations. Our clients have seen up to a 75% savings to this aspect of their business by engaging with us in implementing a strategy specifically designed to enhance growth opportunities across borders.
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