- OFX launches new digital Forward service allowing Australian SMEs to lock in exchange rates for future transactions across 11 major currencies for up to 12 months
- The platform automatically applies pre-locked exchange rates when payments are due, eliminating manual processes and streamlining operations
- Service aims to help businesses manage currency risk and protect margins during uncertain economic times, particularly beneficial as 90% of Australian SMEs operate internationally
- Digital Forward combines online self-service with 24/7 specialist support, making sophisticated currency solutions previously only available to large corporates accessible to SMEs
- Platform provides complete visibility over cross-border cashflow and currency valuation, helping businesses plan with greater confidence and stability
In today’s increasingly uncertain economic climate, many Australian Small to Medium Enterprises (SMEs) are looking to de-risk their business operations as much as possible.
Currency risk is a perfect example that SMEs want to manage without over complicating their financial operations. This often means locking-in rates to mitigate against currency volatility.
Australian based global payments leader OFX has long recognised the need for businesses to take unexpected costs and unnecessary complexity out of their day-to-day operations and now launched a new digital Forward.
The digital Forward helps SME’s lock-in exchange rates for future cash flows, providing certainty and protecting margins. It takes a process that was traditionally complex and makes it simple to access and use, fitting naturally in to the way that businesses already schedule and approve payments.
Whether it’s a single overseas invoice or a full forecast of future income or costs, an exchange rate can be fixed in advance and applied when payments or income fall due, which helps the business to plan ahead with greater confidence and stability.
What makes this truly different is that when the time comes to pay an invoice, the platform automatically draws down from an already locked in rate without the manual back and forth traditionally required. Just a seamless, digital experience that brings certainty and speed to the entire process.
According to OFX Chief Executive Officer, Skander Malcolm, the company’s digital Forward delivers a tangible benefit to Australian SMEs in uncertain times.
“We are excited to be able to bring this offering to the SME community. They may not be able to lockdown the labour market or control the supply chain, but they can take costs out of their business right now and protect margins now by locking in currency rates and streamlining payments with OFX’s new digital Forward Contract,” Mr Malcolm said.
“It gives SMEs certainty at a time when it is needed more than ever before.”
Mr Malcolm said times are tough right now for the nation’s SMEs and with “close to 90 per cent of the sector operating internationally in some way, the digital Forward allows companies to lock in rates for future currency conversions, protecting against volatility and helping streamline payments for smarter hedging strategies”.
“The nation’s SMEs feel like it’s almost impossible to navigate the continual global uncertainty as well as constant changes to technology and systems combined with recent changes to tax and superannuation,” Mr Malcolm said.
With all this in mind, they need less problems and more solutions, which will take away additional complexity.
OFX’s digital Forward allows SMEs to lock in rates online on the OFX platform across 11 major currencies from a period of a couple of days to up to 12-months or if they prefer they can still contact OFX’s 24/7 specialist team.
It’s a point Mr Malcolm said is quite unique in that while applying for a digital Forward Contract is a simple online process, it’s backed up by OFX’s market-leading 24/7 specialists who are only a phone call away.
He said OFX makes accounts payable operations simpler and easier for local SMEs as well as giving them access to currency solutions traditionally only available to large corporates.
“Our currency solutions provide total visibility over future cross border cashflow and currency valuation at a time when certainty is a rare and much-needed commodity,” Mr Malcolm said.
About us:
OFX is a leading financial operations company providing businesses and accounting firms with real-time financial control and visibility to do business anywhere in the world. With an innovative platform and 24/7 human support, OFX automates and simplifies doing business across borders, reducing risk and eliminating routine operational tasks. Offering global business accounts, payments to 180 countries in 30+ currencies and currency risk management solutions to simplify global payments. OFX further enhances business operations by providing corporate cards with spend management, bill payments, vendor management, and integrations with popular accounting and HRIS software, to help achieve better business solutions so accounting firms and businesses thrive.
Headquartered in Sydney, Australia, with offices globally, in the United States, Canada, United Kingdom, Ireland, New Zealand, Singapore and Hong Kong. ISO/IEC 27001:2022 certified globally, 700+ employees, listed on the ASX since 2013, licensed in 50 jurisdictions and regulated by over 50 regulators globally. OFX has been a trusted innovator in global money movement for over 25 years.For more information about OFX and its financial automation solutions, visit www.ofx.com
Contact details:
Anthony Spargo
0400 688 525