Importing a product or service from a supplier overseas for use of the people in South Africa? You have lined up the best deal and agreed upon a price. At this point, you will need to know what the exchange rate is for the payment of the goods or services. Only then can you work out the cost of the product or service more accurately. You can either buy a spot Forex deal, which is an immediate deal, or you can hedge yourself in the forward market by booking a Forward Exchange Contract (FEC). The latter allows you to book today’s exchange rate to be paid at a point in time agreed upon between you and your supplier. This way, you protect yourself against the fluctuating exchange rates and know exactly what your costs and profits will be at the time of payment, and you can cost your product or service to the market to which you are selling.
Exporting your product or service to an offshore entity or individual? You would price your products or services in Rands but you would need to invoice in currency, so you would have to confirm a rate of exchange with us to ensure you receive the correct amount of Rands to cover your costs and have a decent profit as well. You can either take a chance and hope that the foreign exchange rate doesn’t move or, better yet, be one of the few people in the country to hope for the Rand to weaken from the point of invoice, or you can hedge yourself and book a Forward Exchange Contract at the price that we can give you today for a future date, so when the currency arrives in South Africa, you will already know what your converted rate will be and you know what your profit will be.
What Gapex Can Do For Your Business
- Spot Trading;
- Best possible foreign exchange rates to reduce the cost of your product or service and thereby increase your profit.
Cross Border Escrow Solution
If you want to import goods from a supplier you have never dealt with before, you might feel as though you are gambling with your money. Will they fulfill their obligation and send you the goods after you have paid them? If you want to eliminate this risk, and the sleepless nights, you need our newest solution. We partnered up with TradeSafe to bring you a Cross Border Escrow Solution. We are the independent third party you need to help you import goods safely and securely. We also eliminate the need for Letters of Credit, Standby Letters of Credit, and Bank Guarantees.
Get in touch with us today by filling in the form on the Contact Us page.