Businesses of all sizes face exchange rate risk when conducting transactions in foreign currencies with partners such as companies, suppliers, customers, subsidiaries, or parent companies.
Protection Against Exchange Rate Risk
Forward payment contracts offer businesses the opportunity to protect against exchange rate fluctuations by locking in a rate for a specific amount of foreign currency, which can be used later, regardless of market changes during that period.
Types of Forward Payment Contracts Offered by iBanFirst
iBanFirst allows its clients to subscribe to several types of forward payment contracts:
Fixed Forward Payment Contract: A rate is set for a given period, providing cost predictability.
Flexible Forward Payment Contract: Allows some flexibility in managing amounts and maturities.
Dynamic Forward Payment Contract: Adapts to market fluctuations, offering a more responsive approach.
Activation of Forward Payment Exchange Contracts
Forward payment contracts are additional services that must be activated via the iBanFirst platform and subscribed to by phone with your account manager.
Contact
To learn more about forward payment contracts and discover how they can benefit your business, contact your account manager.