Our personalised service begins with a consultation whereby we can define the risks that your business is exposed to. We will be able to implement a bespoke strategy to mitigate these risks and help you to protect your bottom line and optimise profitability. Currency markets often fluctuate by several percent over the course of a few days, which can have a direct impact on your profit margins. We provide an array of efficient hedging tools for you to utlilise.
Forward Contracts are used to fix an exchange rate for future settlement and delivery. This provides security and enables businesses to budget with clarity, without having to worry about the detrimental impact of adverse currency movements.
Limit Orders can be used to harness market volatility and automatically lock in a favourable rate at your target level.
Stop Losses can be used in conjunction with Limit Orders, in order to provide protection. They can be implemented at your budgeted level as a 'safety-net', activating in the event of an adverse market swing.
International collection accounts can give businesses a competitive edge in foreign marketplaces. For our clients this facility mimics the benefits of having multiple bank accounts in different countries and currencies. The difficulties and expenses incurred by applying for, opening and maintaining foreign bank accounts are avoided, without needing a foreign entity.
Online marketplace sellers are particularly prone to difficulties and unforeseen costs when accepting payments from foreign buyers. Online marketplaces such as Amazon will often require that the customer has a bank account based within the country they are receiving funds from, which can prove to be an impossible task. Failing this, the online marketplace will generally insist on facilitating the currency exchange themselves, on behalf of the customers, when repatriating sales into their home currency. The customer will often incur substantial costs of up to five percent of the product price as a result.
To combat this issue and provide a feasible and cost effective alternative, Lighthouse FX provide all of our clients with multi- currency, multi jurisdictional, collection accounts, enabling them to utilise our competitive exchange rates. This also adds to your offering by giving you the ability to invoice your customers in their local currency. Therefore they know exactly how much they owe and will avoid unforeseen fees when sending funds.
Our dedicated dealing team have a wealth of experience and a solid understanding of the financial markets. You will be partnered with a senior FX professional (subject to exceeding eligibility criteria), who will provide a traditional telephone broking service, alongside a pro-active approach, keeping you up to date with market developments. Our staff are targeted on client retention and always strive to provide an unrivalled quality of service.
Our back office and payments team are in a league of their own and ensure a smooth and speedy transition from beginning til end. Clients have the option of same day delivery on major currencies and are kept updated every step of the way. Our clients also benefit from the latest cutting edge technology at their fingertips, with a choice of over 140 currencies and the ability to control payments to over 150 countries worldwide, at the touch of a button online.
A global aerospace corporation, headquartered in the UK, had an ongoing requirement to purchase $1.5 million per month to pay for components from the USA.
The financial director had to contend with a devaluing pound following the Brexit referendum, which was eroding the company's profit margin.
After consulting Lighthouse FX, a forward hedge was implemented, buying six months’ worth of USD to match against accrued invoices. A 5% deposit was paid to avoid cash flow shortages. The company could now budget with clarity and avoid exposure to future sterling depreciation, as the exchange rate was locked in for the period in question.
By the end of their contract, they were buying their US dollars 7 percent above the current market value, without which the company would have incurred a loss of over £80,000 pcm.
Our clients are not short of options with over 140 currencies to choose from, the most common of which are listed above. Some currencies are subject to governmental/central bank restrictions that prevent/limit their sale. Payments to certain countries are sanctioned/prevented by law. A member of our dealing desk will be happy to discuss your requirements with you and analyse your options to find the most suitable solution.
Copyright © 2018 Lighthouse FX Ltd - All Rights Reserved.
Lighthouse FX Ltd is a company registered in England and Wales (Registration number 11450998). Payment services for Lighthouse FX Limited are provided by FCA regulated strategic partners, the Currency Cloud Limited (Registered in England No. 06323311) and Ebury Partners Limited (registration no. 7088713). For more detailed information please visit the ‘security and regulation’ page.