Simplifying Global Payments for a Growing E-Commerce Business
Client:
A Europe-based e-commerce company selling products internationally, with customers spread across the U.S., Asia, and Europe.
Challenge:
The client struggled with managing payments across multiple currencies due to high foreign exchange fees and delays in processing international transactions. The business needed a more efficient way to accept payments in local currencies and make payments to international suppliers without incurring excessive costs.
Solution:
applá-x provided the client with a multi-currency account that allowed them to hold and receive funds in over 100 currencies. The company was able to invoice customers in their local currencies and manage supplier payments through a single IBAN.
Using applá-x’s Foreign Exchange (FX) services, they could also lock in favorable exchange rates for future payments to suppliers, reducing the impact of currency fluctuations.
Results:
- Cost Savings: The client saved an estimated 20% in foreign exchange fees and cross-border transaction costs.
- Improved Efficiency: With a single IBAN account for multiple currencies, the client streamlined their payment processes, reducing the time spent managing multiple accounts.
- Faster Transactions: Payments were processed more quickly via SWIFT, SEPA, and ACH, ensuring timely payments to suppliers and faster receipt of customer payments.
Client Testimonial:
“applá-x helped us simplify our global payments and significantly reduce our costs. The multi-currency account allowed us to operate more efficiently, and we no longer have to worry about managing different accounts for every currency.”
Managing Foreign Exchange Risk for a Manufacturing Company
Client:
A mid-sized manufacturing company based in the UK, with suppliers across Europe and Asia.
Challenge:
The client regularly made large payments to suppliers in euros and Chinese yuan, which exposed them to exchange rate fluctuations. These fluctuations made it difficult to forecast costs and protect profit margins.
Solution:
applá-x introduced the client to its Forward Contracts service, allowing them to lock in favorable exchange rates for up to 12 months. This provided stability and predictability in their cash flow, reducing the impact of fluctuating exchange rates on their margins.
The client also benefited from applá-x’s real-time interbank pricing, ensuring they got competitive rates on any spot transactions they needed to make.
Results:
- Risk Reduction: The client was able to eliminate the uncertainty caused by fluctuating exchange rates by locking in rates for key supplier payments.
- Predictable Costs: With forward contracts, they had better control over their financial planning and could budget more accurately for raw material purchases.
- Increased Profit Margins: By securing favorable rates in advance, the client improved their profit margins on product sales.
Client Testimonial:
“applá-x’s FX solutions have been a game-changer for our business. Locking in exchange rates has allowed us to protect our profit margins and forecast our finances with confidence.”