Scenario
A textile firm based in the UK imports a number of its materials from the Far East.
Due to lead times, the company needs to plan ahead and place orders weeks, sometimes months, in advance.

The costs involved with these orders are high and fluctuating exchange rates can substantially impact their bottom line.

The company needs to find a solution that allows them to accurately forecast the cost of its orders and be able to set prices for their finished products in their catalogue and online shop.

Solution
Raphaels Bank offers forward contracts that let clients lock in a rate of exchange in advance for delivery of funds on a future date.

Once a rate is secured, the settlement currency equivalent is fixed for the duration of the contract, thereby protecting profits from erosion by fluctuating exchange rates.
As Raphaels Bank allows you to lock in rates up to one year in advance, companies can monitor the market for favourable rates and secure funds for upcoming needs whilst achieving their costing levels for pricing catalogues and online services.

Result
By utilising the forward contract service offered by Raphaels Bank, the textile firm is able to lock in a rate when they initially place their order with their Far East suppliers, enabling them to know exactly how much the total cost of the order will be.

This allows them to more accurately forecast budgets, profit margins and price lists.

To find out more about overnight orders please contact the sales team on 0800 587 8722.