As a growing UK importer that buys large quantities of stock from Asia, Something Different Wholesale faces significant foreign exchange exposure.
The Swansea-based firm usually trades with its Asian partners in US dollars. The weakness of the pound against the dollar, particularly since last summer’s Brexit vote, has therefore been a particular challenge.
Like most SMEs, Something Different initially used its bank for corporate currency transactions (FX), but soon realised the rates were not at all competitive. It then tried several London-based brokers and found the rates were better, but they sometimes rose again after a honeymoon period.
Lack of consistency and personal contact
The lack of consistency made it difficult for the company to plan effectively. Because the London brokers used call centres rather than having account managers, there was also no single point of contact with whom Commercial Director Anthony David could discuss the business strategically. This meant it was easy to lose track of the balances on the forward contracts the firm was using. Moreover, what contact he did have with the brokers typically took the form of pushy sales calls!
Having decided that London brokers were giving the business the runaround, Something Different decided to find an FX specialist more in keeping with its own name. Another business in Swansea recommended locally based Godi (then trading as OSTCFX) – and the difference was immediately apparent to Anthony.
Something different in foreign exchange
The biggest and most obvious difference was that Godi account manager Brett Thomas was actually able to come to Something Different’s office to share his expertise in foreign exchange and discuss business-specific opportunities with Anthony and his colleagues. For the first time, they had an actual relationship with a broker. Being able to meet in person meant there was a sense of trust and accountability, and Godi’s improved rates were the icing on the cake.
Now working exclusively with Godi, Something Different is much better able to mitigate its FX risk. The company benefits from a close relationship with Brett, who keeps a close eye on the markets – and is also available to make key deals at critical (and unsocial) times…
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