18 Finance, Legal & Accounting


12TH FEBRUARY 2024 BUSINESS GUIDE DISTRIBUTED WITH


Growing your business in an unstable global economy


Steve Paul, Deputy CFO at Equals Money, discusses


Global instability is making it increasingly diffi cult for SMEs to grow and expand across multiple markets. For example, only a quarter of exporting SMEs in the UK saw their overseas sales rise in the fi nal quarter of 20231


. Events as far back as Brexit and


as recent as confl icts in the Middle East have caused uncertainty and instability for British businesses of all sizes. However, to increase profi ts and continue to grow in a globally competitive economy, British businesses need to be able to expand internationally. One way businesses with a


global footprint can protect their bottom line against vola- tile exchange rates is by speaking to a foreign exchange expert and implementing a hedging policy.


STEVE PAUL


What’s hedging? Hedging helps reduce the risk associated with international payments. One popular method is booking a forward contract, which allows you to lock in a current exchange rate for a payment or transaction in the future. A forward contract with Equals Money2


allows


you to book a rate up to 24 months in advance of purchase. Booking a rate in advance means


you’re committed to the rate you book regardless of how it moves after the fact. T is helps you protect your business from unfavourable currency moves, apply current rates to future cash fl ow, and lock in profi t and loss on future incomes.


‘I don’t want to gamble on the market — why would I hedge?’ When you hedge and commit to a rate for future payments, you mitigate the risk that comes with a volatile market. Without hedging, you open your business up to both the upside and downside of economic swings without giving yourself enough room to plan or predict cash fl ow. Whatever your appetite for


risk, hedging gives you stability and certainty when planning for your business.


How can Equals Money help me hedge? Nobody can predict the movements of the market with total accuracy. However, as experts in managing foreign exchange, Equals Money can help your business control risk when dealing with transactions across multiple currencies.


T ere are a number of ways to


implement a hedging policy. T e team can help you evaluate your risk appetite and exposure and walk you through your options. You can then make informed deci- sions based on what’s best for your business. It’s a diffi cult time to be a British


business looking to expand glob- ally. Weathering change and persevering in the face of global uncertainty is key to helping your business not only grow but thrive. Equals Money is making money


movement simple for over 20,000 businesses with support on interna- tional payments, expense manage- ment, and more. It works with you to understand your payment needs and off ers specialised guid- ance on the best options available to you. Visit equalsmoney.com to see how Equals Money can help your business.


1 According to the British Chambers of Commerce Trade Confi dence Outlook for Q4 2023 2 Equals Money can only offer forward contracts to facilitate payments for goods and services


Equals Money PLC is registered in England & Wales No. 05539698. Equals Money PLC is part of Equals Group PLC (Registered in England & Wales No. 08922461). Registered Offi ce: 3rd Floor, Vintners’ Place, 68 Upper Thames St, London EC4V 3BJ. Equals Money PLC is authorised by the Financial Conduct Authority to provide payment services (FCA No. 488396).


equalsmoney.com


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