To aid in cross-border payments, Western Union launched risk management solutions for small businesses in the Czech Republic.
The solution helps companies to lock in a current exchange rate for a set period of time and flexible forwards, also known as currency options. This allows them to effectively manage risk while taking advantage of positive changes in market exchange rates.
With this offering, Western Union intends to stabilize against adverse market developments while giving businesses the opportunity to participate in favorable moves, usually for zero cost.
“SMEs face many challenges when making international payments that can have a negative impact on their bottom line. This causes difficulty in forecasting cash requirements, and puts their profit margins at risk,” said Jitka Kunstová, Czech Country Manager, Western Union Business Solutions. “The introduction of flexible forwards will support business development and reduce risk of foreign payables and receivables.”
The company offers currency option products in the U.K., Australia, New Zealand, Singapore, Canada, the U.S., Austria, Germany and France.