Many SMEs operating in international trade of goods and services experience cash flow issues due to unforeseen risks, market volatility and seasonality blocks. These unsecured payables finance allows your business to use capital when it’s needed most. Our partner helps limit your exposure to market volatility by giving you the option of sending payments in your suppliers’ local currency and repaying in your local currency. 

Summary of offering: 

• Unsecured credit line of up to EUR 3mn, a repayment period of up to 150 days, and very competetive pricing.

• No hidden fees or costs to maintain or rollover the line. 

• Interest only charged for the line used and no fees for not using the line. No fees for early repayment. 

• Quick payments to suppliers in over 130 local currencies. 

• Access to a secure, simple, and transparent online trading platform for improved reporting and payment visibility. 

• API integration so you can control all your international trade under one roof. 

For any SME trading across borders, it is vital to be aware of how currency markets can impact your bottom line. Audhild's partner can help mitigate the impact of exchange rate fluctuations through comprehensive risk management tools.

You will receive a range of tailored FX and cash management solutions to suit your company and its goals. Your dedicated relationship manager will support and manage your finances to ensure our solutions are working for you. You can also track and manage your risk management tools 24/7 using a convenient online portal. 

Types of transactions:

Spot transactions

The simplest transaction. It is the purchase or sale of a foreign currency over a small time period,typically two days.  You will always know the exact volume of currency you are about to buy.

Forward contracts

These are more complex. They are a risk management tool enabling you to manage future payments at a stable exchange rate. You generally have three options when it comes to forwards:

1. Fixed forwards: Cheaper but less flexible than an open window forward, a fixed forward is a good solution if you receive or pay in a foreign currency on the same day of each month. 

2. Open window forwards: More suitable if your business can’t guarantee when bills are due or will receive payments. You can draw down any amount at anytime, up to the total value of the contract. 

3. Non-deliverable forwards: NDFs work in much the same way as deliverable forward contracts, in that you can set an exchange rate over a specific period of time.

On maturity, the difference between the exchange rate set in the contract and the day’s fixing rate is settled between Audhild's partner and your business in the settlement currency. The solutions are offered  across a wide range of emerging market currencies.

Hedging:

If your costs are flexible, there is the option to purchase a percentage of your FX exposure using a forward contract and buy the rest using spot transactions as and when you need to do so. This is known as hedging. Many SMEs purchase only a certain percentage of their foreign exchange exposure (30-60%). So when the need to exchange currency occurs they can either draw down from their forward contract, if the markets have moved against them, or opt for a spot transaction, if the markets have moved in their favor, to benefit from the improved rate.

Layering forward contracts:

This simply means that you buy your forward contracts at different times. So you start off by buying a forward to cover your basics. If the market moves in your favour and forwards for your currency pairs become cheaper, you buy another forward contract. That way you always eliminate a percentage of your currency risk while also taking advantage of different pricing levels due to market movements.

Your currency account:

• Available in major countries of Europe and North America

• In 30+ currencies

• Recognized by banks worldwide via SWIFT 

• Accepts domestic and international payments 

Offers your clients a convenient way to pay you:

• Accept payments in the local currency of your client, helping you win business

• Ensure transfers always addressed to an account in your name

• Obtain in-country accounts to collect locally without a need for you to have local presence or setup

Move faster than with a bank:

• Currency Accounts provided within hours

• Register online or talk to a specialist 24/7

Manage your cash and FX exposure better and more efficiently:

• Hold balances in foreign currencies and access your funds online, anytime.

• Make fast money transfers and pay suppliers in 150+ currencies

•  Simplify reconciliation with exact matching between payments and invoices

• Move funds to and from your subsidiaries faster

• Access complementary FX, hedging, financing and cash management solutions

Currency accountd available in:

GBP, EUR, USD, CHF, SEK, JPY, DKK, NOK, AUD, HKD, PLN, TRY, HUF, CAD, NZD, AED, BGN, CNY, CZK, HRK, ILS, JOD, OMR, QAR, RON, RSD, SAR, SGD, THB, TRY, ZAR - more available soon