Currency Exchange Issues and International Debt collection
As an international debt collection agency a major problem we have found when recovering monies for our clients is the currency exchange rates and fees incurred resulting in quite substantial differences between invoice value and amounts recovered.
These problems mainly arise from invoices being raised in one currency (GBP) and paid in another currency (EUR) which involve substantial fluctuations of currency rates, especially in today’s climate. These payments are also subject to bank charges and fees which can mount up considerably depending on which countries you are trading with. All this will result in a shortfall in the amount actually received.
The best possible way to avoid these fees and charges would be to have at least the following three currency accounts:
This is our currency in the UK and naturally will be the main bank account.
Our main trading partners are in Europe and the majority of countries will hold a EURO account
- US Dollar
This is the main international currency outside UK and is accepted and used in most far east countries and North and South America. Also many African countries will trade in the US dollar.
The reasons why operating multiple currency accounts proves extremely useful and viable are as follows:
- The buyer and seller know exactly what the costs are and what invoice amounts to expect
- Avoids fluctuating currencies
- Considerably reduces bank charges and fees
- Prevents unnecessary excuses for delayed payments. As an international debt collection agency this excuse is often used.
Another advantage of trading in various currencies is having control on when you decide to buy and sell. We also recommend you look into using an independent foreign exchange company as they may be cheaper than you bank.
There are a number of foreign exchange companies who will provide you with a monitoring service and buy and sell your currencies at the best rate and time suitable to you.
However, if it is not viable or cost effective for you to operate multiple currency accounts we are able to assist you with our risk free currency account service.
Here at Creditreform our international debt collection services have been operating for over 100 years and although still learning we know how the debtors operate and try and avoid making payments in full and many times not at all. One of the main excuses is making payments from one currency to another. We hold client accounts in a number of currencies so if you do have problems getting payments from foreign customers anywhere in the world as an international debt collection company we can make sure you get paid in full and quickly. Also we operate on a No Win No Fee Basis charging an agreed commission against monies recovered only so you do not have to pay out any upfront high fees.
For further details of this or any of service please contact us on 0121 442 5330 or email to email@example.com