Locked-in favourable exchange rates when paying Far Eastern supplier
Protected tight margins through a smart currency buying plan
Achieved more accurate budgeting forecasts
Case Study
London-based seafood importer saved thousands per transaction when paying suppliers in the Far East
Overview
A family-run seafood import business based in London’s renowned Billingsgate Market specialises in importing high-end crustaceans from Southeast Asia and delivering them to top-tier restaurants across the city. To maintain their reputation for quality and reliability, they rely on timely and cost-effective payments to their suppliers in USD.
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Monetae provided tailored FX solutions, including spot payments and forward contracts, to help the business secure competitive exchange rates and protect their margins against currency fluctuations.
Challenge
As the business imports premium seafood from the Far East, they frequently make payments to their suppliers in USD. With exchange rates constantly fluctuating, this created uncertainty for the company, making it difficult to plan and manage costs effectively. They needed a solution to ensure they could pay their suppliers at favourable rates, without being exposed to sudden currency swings that could affect their profitability as the business runs on tight margins.
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Solution
Monetae worked closely with the seafood importer to develop a comprehensive FX strategy that met their specific needs. We offered a range of spot payments for immediate currency conversions and forward contracts to lock in favourable exchange rates for future payments.
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Payments
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Spot Payments: Monetae provided spot payment services, which allowed the business to convert GBP into USD at the most favourable rates when they were ready to make payments.
This solution gave the business:
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Real-time access to competitive exchange rates: Ensuring they could make payments at the optimal time to minimise currency conversion costs.
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Same-day settlement: Allowing them to fulfil supplier payments immediately, keeping their supply chain uninterrupted.
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No commitment to future rates: Offering flexibility without being tied into long-term financial commitment.
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Forward Contracts: Monetae provided forward contracts, a key FX risk management tool that allowed the business to lock in a favourable exchange rate for future payments.
This offered:
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Predictability in financial planning: By securing exchange rates in advance, the company could accurately forecast their payment obligations and operating costs, leading to better financial management.
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Protection against currency swings: If the GBP weakened against the USD after the rate was locked in, the company was shielded from paying more than expected for their seafood imports.
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Tailored contracts: We tailored the forward contracts to align with their cash flow cycle and payment schedules, ensuring the contracts fit their specific business needs.
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FX Risk Management
We developed a comprehensive FX risk management strategy for our client through a two-pronged strategy involving a combination of spot payments and forward contracts, specifically designed to:
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Balance flexibility and security: The business could use spot payments when rates were favourable, while forward contracts provided security for larger, future transactions.
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Bring costs down: By securing competitive rates and timing their spot payments effectively, the company was able to reduce the overall cost of currency conversions.
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Bespoke hedging strategy: We worked closely with the business to assess their needs and adjust the hedging strategy over time, ensuring it aligned with their business growth and market changes.
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Seafood Importer
This family-run seafood import business, based in London’s iconic Billingsgate Market, specialises in sourcing premium crustaceans from the Far East. The company supplies high-end restaurants across Greater London, known for delivering top-quality seafood to some of the city's most prestigious dining establishments.
Industry
Food & Drink
Subsector
Seafood Importer
Client Type
Small Business
How we helped
Outcome
With Monetae’s FX solutions in place, the seafood importer now enjoys greater financial stability and control over their international payments. The forward contracts have provided the company with peace of mind, knowing they are protected from sudden unfavourable shifts in the USD/GBP exchange rate. At the same time, the spot payments allow them to take advantage of favourable rates as they arise, maximizing savings on each transaction.
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As a result, the business has been able to:
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Maintain strong relationships with their suppliers by ensuring timely and reliable payments.
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Improve their ability to plan for future costs and manage cash flow.
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Focus more on growing the business and delivering high-quality products to their prestigious clients.
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Key Solutions Delivered:
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Spot Payments: Provided flexibility to make payments at the best available rates.
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Forward Contracts: Locked in beneficial exchange rates for future transactions, reducing risk.
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FX Risk Management: Protected the company’s margins from currency volatility.
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Our bespoke FX solutions have enabled this family-run seafood importer to thrive in the competitive London market, allowing them to secure the best possible prices and manage their international supplier relationships with confidence.