London, England – December 28, 2017

For businesses dealing in import and export category, handling foreign currencies is an unavoidable reality. Even after having enough knowledge regarding the currency exchange rates, there are companies that continue to blame unforeseen movements in the currency market for their poor results.
Instability in the foreign exchange (FX) markets caused by the political and economic confusions have had an uncertain impact worldwide and is bound to continue in the coming years. This will make it necessary for businesses in the country to implement robust strategies for managing currency fluctuations.
For businesses in UK that deal with currencies other than Sterling, the past 18 months has been challenging especially after the UK-EU separation. This is has also opened potential opportunities for all the UK exporters. But, it has been nothing short of a disaster for importers based in the UK.
This highlights the need of risk management for all the SMEs. For larger businesses, being careless regarding the currency risks can have a huge impact whereas for SMEs the same can be catastrophic. It is surprising to see how few SMEs are well prepared against the impacts of currency fluctuations.
If you are among the businesses that do not have an effective strategy in place, there are various tools that will help you manage the currency fluctuations. Forward contracts can be one effective way that might minimise or eliminate the FX risks. With forward contract, a business can fix the current exchange rate for a settlement at an agreed date in the future, making your FX a fixed cost.
Moreover, if your business can accurately predict its quarterly/annual revenues and expenses,it will allow you to lock in the percentage of that exposure for settlement at a future date, negating a major part of your risk to currency fluctuations.
At Nucleus Commercial Finance, we not only help business by providing them funds but also provide them with legal guidance on their business finances. If you wish to avail our expert guidance and services, visit our site https://nucleuscommercialfinance.com/

Nucleus Commercial Finance Ltd.
2 Gees Court
London
W1U 1JA
+44 (0)207 839 9451
Email: [email protected]