Currency is a second commodity.
It adds profit.
If you sell any product in any major foreign currency with a future cash flow, an immediate sale adds riskless profit to your bottom-line
Commodity 1:
your product is worth A$ … ?
Commodity 2:
the value of currency is worth 1-2% p.a. additional cash
In 2016 the time value of your foreign exchange adds
US Dollars: + 1.45% per annum to revenue
Euros: + 2.74% p.a. to revenue
Yen: + 1.50% p.a. to revenue.
100% of increased revenue goes directly to profits
This is additional, risk-free revenue - No forecasting
US Dollars: + 1.45% per annum to revenue
Euros: + 2.74% p.a. to revenue
Yen: + 1.50% p.a. to revenue.
100% of increased revenue goes directly to profits
This is additional, risk-free revenue - No forecasting
An example of adding profit:
Contracting today for delivery, Christmas 2016
IF: A$1,000,000 of sales for delivery at Christmas has
a 10% profit of A$100,000
IF invoiced in:
US Dollars profit rises to A$ 114,500 a 14.5% profit margin
Yen: A$ 115,000 11.5%
Euros: A$ 127,400 12.7%
No net currency risk + locked-in returns,
IF… works.
Contracting today for delivery, Christmas 2016
IF: A$1,000,000 of sales for delivery at Christmas has
a 10% profit of A$100,000
IF invoiced in:
US Dollars profit rises to A$ 114,500 a 14.5% profit margin
Yen: A$ 115,000 11.5%
Euros: A$ 127,400 12.7%
No net currency risk + locked-in returns,
IF… works.
FAQ
How are these benefits possible?
IF takes advantage of Australia’s relatively high interest rates.
You benefit because IF removes any exposure to Australian Dollar volatility
Who wins?
You do. You can choose to gain 100% of these benefits or share the benefits with your counterparty.
Do the banks lose?
Actually, they gain too – from transaction margins and a more credit-worthy client who has no FX risk but a world-wide market.
What else could I do to increase profits but not risk?
IF has a financial Global Positioning (and Pricing) System (GPS) that enables exporters to navigate volatile global commercial and financial markets, highlighting opportunities to increase returns and control downside risk.
What does Giffnock Consulting get out of this?
Giffnock provides Executive briefings applying the Interactive Financial management system tailored to your opportunities to increase profits.
IF takes advantage of Australia’s relatively high interest rates.
You benefit because IF removes any exposure to Australian Dollar volatility
Who wins?
You do. You can choose to gain 100% of these benefits or share the benefits with your counterparty.
Do the banks lose?
Actually, they gain too – from transaction margins and a more credit-worthy client who has no FX risk but a world-wide market.
What else could I do to increase profits but not risk?
IF has a financial Global Positioning (and Pricing) System (GPS) that enables exporters to navigate volatile global commercial and financial markets, highlighting opportunities to increase returns and control downside risk.
What does Giffnock Consulting get out of this?
Giffnock provides Executive briefings applying the Interactive Financial management system tailored to your opportunities to increase profits.