HONG KONG, June 14, 2016 /PRNewswire/ -- Western Union Business Solutions ('WUBS'), a leader in global payment services, today announces the launch of a new product to help for tens of thousands of SMEs in Hong Kong who are making international payments.
The new FX Options is added to Western Union Business Solutions' current range of FX products -- namely its spot FX and forward FX contracts -- and payment products. The new FX Options aim to give more choice to companies that deal with multiple currencies in their day-to-day business. It enables them to hedge currency risks and protect themselves against volatile exchange rates.
Volatile exchange rates can have a significant impact on profit margins and cash flow. Research with businesses shows that 56.3% of SMEs in Hong Kong only find out the true cost of an invoice after the payment is made1. When payment costs run higher than expected, companies are negatively impacted as they have to cover the unexpected cost by using working capital or forfeit some of their profit margin.
"FX Options can help SMEs manage currency risk by guarding against negative market shifts, as well as giving business owners the opportunity to take advantage of favourable movements in the exchange rate. FX Options enable SMEs to predict their cash flow more accurately and develop more reliable business forecasting. This helps SMEs to focus on their business, rather than worrying about cash flow challenges that impact their ability to purchase products or disrupt their supply chains," says Simon Glendenning, Regional Director APAC, Middle East & India at Western Union Business Solutions.
Western Union Business Solutions will introduce FX Options that can be tailor-made to align to the business goals of each SME. Each FX Option will serve a slightly different purpose, allowing businesses the flexibility to choose the best option for them.
"Although globalisation has made it easier for businesses to tap into overseas opportunity, it has also added new complexity to the management of cash flow. Companies are seeing that even small movements in exchange rates can have an impact on their bottom line. FX Options are a popular way to mitigate the impact of fluctuating currencies on a business' profits. They help prepare for future foreign currency expenses and stabilise cash flow, in turn allowing companies to budget for the future with confidence," concludes Glendenning.
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Source: East & Partners 2015 |
About Western Union Business Solutions
Western Union Business Solutions enables companies of all sizes to send and receive international payments and manage global cash flow, creating unique solutions tailored to suit their individual needs. It is a business unit of The Western Union Company (NYSE: WU), a leading nonbank provider of cross border payments, which offers Business Solutions services in over 30 countries. Clients are supported by a network of trading offices, strategic banking relationships and a global clearing network and can send cross-border foreign exchange payments in more than 130 currencies.
About Western Union
The Western Union Company (NYSE: WU) is a leader in global payment services. Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business Solutions branded payment services, Western Union provides consumers and businesses with fast, reliable and convenient ways to send and receive money around the world, to send payments and to purchase money orders. As of December 31, 2014, the Western Union, Vigo and Orlandi Valuta branded services were offered through a combined network of over 500,000 agent locations in 200 countries and territories and over 100,000 ATMs and kiosks. In 2014, The Western Union Company completed 255 million consumer-to-consumer transactions worldwide, moving $85 billion of principal between consumers, and 484 million business payments. For more information, visit www.westernunion.com.
