Case Study - Swimwear Distributor

A leading UK swimwear distributor buys product from the Far East , selling it in the UK . Quarterly payments are made to suppliers in Hong Kong.

Issues:
The company buys product a few times per year, needs to get the best possible exchange rate, and make sure that suppliers are paid promptly, in Hong Kong dollars. The firm also needs to be able to forecast what their costs will be, so they can budget properly, and price their products accordingly.

Solution:
Although the suppliers are only paid once per quarter, TorFX analysts are constantly monitoring the market on the client's behalf, and advising them on strategies to help them achieve a favourable rate. For example, our regular market updates can be tailored to specific currency pairs, and our forward contracts allow the client to fix their exchange rate for up to 2 years ahead, leaving them free to concentrate on their core business.

Once a currency purchase has been made, TorFX make the payment directly to the supplier, by International Funds Transfer. Both supplier and client can elect to receive an internationally recognised payment confirmation as soon as the funds have been sent.