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Bidvest Bank: Customer Foreign Currency (CFC) accounts that make sense

By Bidvest Bank
14-06-2011
You may be asking what a Customer Foreign Currency account is. This is an account used by a company that frequently needs to participate in foreign exchange payments due to the nature of its business. These companies, which have offshore trading liabilities owing to import or export transactions, include:
  • Shipping agents
  • Freight forwarders
  • Marine insurance brokers
A foreign currency account can be used to facilitate short-term offshore finance that eradicates the requirement of early deliveries under Forward Exchange Contracts (FECs). Bidvest Bank foreign currency accounts are available in the following currencies:
  • Australian Dollar
  • Canadian Dollar
  • CHF
  • Euro
  • British Pound
  • Japanese Yen
  • US Dollar
A Customer Foreign Currency account from Bidvest Bank offers you complete control over your finances. Even though Bidvest Bank manages the account, you are in the driving seat when it comes to converting export proceeds into South African Rands.  Bidvest Bank is a foreign exchange specialist that offers specialist service in administering offshore business and transactions. Browse the Bidvest Bank website for more information on our services.

Open a Customer Foreign Currency account with Bidvest Bank 

It may become confusing figuring out whether or not your business requires a foreign currency account. Furthermore, you may wonder whether or not your enterprise qualifies for a Customer Foreign Currency account. What types of businesses will this account benefit? Here are some parameters:
  • Importers and exporters involved in the transportation of goods
  • Service providers involved in import and export transactions
  • Tour wholesalers and operators, insurance brokers and stockbrokers

There are many advantages to having a foreign currency account:
  • the account is easy to access, administer and operate
  • t also facilitates the pooling of several small amounts until a viable sum is reached, which can then be refinanced at profitable interest rates
  • a foreign currency account allows for interest on credit balances to be calculated daily on outstanding balances and is payable monthly in arrears
  • the account can be used to change to a cheaper form of finance should it become available
  • an exporter can eliminate exchange risk by selecting an account in the same currency as the country where the export proceeds will be received
  • exporters can also use the facility for both pre and post shipment financing
  • import payments can be offset against export accruals

Contact Bidvest Bank for more information on the benefits of a foreign currency account for your business.