There are a number of articles on the internet that address the issue of importing from China, for example China Sourcing: The Keys to Success or How to Buy in China. Few of these however deal with the currency exchange rate, the risks associated with exchange rates and solutions that enable a company to ensure and increase its profit margins when converting from GBP or EUR to USD.
While these aspects are vital, importers often overlook these as they believe that they have no control over factors such as the exchange rate they get. To think this would however be wrong as there are a number of providers that will be able to assist you with your international transfers and conversion from euros or pounds to dollars. The adoption of European Directive 2007/64/EC for payment services has enabled companies to use payment services such as RationalFX to maximize the profitability when paying suppliers.
What is a payment institution and how can it help me increase my profit margins?
The website neopay.co.uk defines a payments institution as a service that “acts to facilitate payment transactions, for example they may act as an intermediary between the purchaser and seller to provide additional security or more convenient payment methods.”
As RationalFX is a foreign currency exchange broker who specialise in money transfers, we have the necessary expertise to enable you to get the most from your money transfer experience and more favourable exchange rates than if you had gone through your bank.
What are the benefits of using RationalFX and will it help me to optimize my USD payments to China?
As RationalFX is one of the leading payments institutions on the currency exchange market, you will benefit from:
- A personalized service. We realise that the needs and requirements of every business will differ significantly and will be very specific, so our services are adaptable to match your expectations.
- A more attractive exchange rates than your bank will offer. On average our exchange rates are 20% more competitive than those offered by banks.
- A fast service. As we are a member of the SWIFT banking network, 80% of the time that our clients make a dollar money transfer to China it is completed within 24 hours.
- Our online payments platform is available 24/7 so you can make your transactions anytime of the day and from anywhere around world.
- A preferential rate. Our service guarantees you a great exchange rate, low transfer fees and a fee free transfer when you are transferring over £2500.
- High levels of security. We use the same security protocols and data encryption that banks use, so your payments will be made securely.
- RationalFX market news. Our advisors will let you know news on the foreign exchange market and our market analysis daily, informing you of the trends upward or downward of the main currencies, to help you formulate a payment plan.
With RationalFX several different services will be available for you to help you find the exchange rate and strategy that best suits your business.
A forward: a good way to ensure your profit when importing from China
A forward is a highly suitable solution when importing from China as it will allow you to get a fixed exchange rate for up to 2 years. The advantage of this is that during the term of your forward contract the price of the goods that you have purchased will no longer be subject to exchange rate variations, so your profit margin will not be reduced by exchange rate fluctuations.
As we are committed to providing preferential exchange rates, you will also be able to increase your profit margins because you will spend less money for the same amount in USD.
You will be able to contact an advisor on +442072208181 and they will be able to answer all your questions on the functioning of a forward deal, along with our various other services. You will also be able to contact us by filling out the contact form, or you could get a quote directly by opening up a free account to see how beneficial our exchange rates will be.