Valufin

Valufin also offers an advisory service, we can review your foreign exchange activities so that the Board gains assurances and understanding on forex risks, opportunities and processes and whether these are optimally managed.

Valufin also works with individuals, whether you are a Family Office, a HNW individual or just an ‘individual’ you will gain from independent currency advice.

We offer a full support service ensuring your forex transactions are done with an appropriate provider at the right time and price.

Whether you are looking to hedge overseas investments, buy a foreign property or planning a wedding abroad, whenever there is a need to exchange currency we can deliver the most appropriate all round solutions.

Bespoke currency advice – We determine the best working relationships and operational solutions which are most effective for your needs.

Reviews – Valufin offer currency reviews or a full currency audit.

Training – We provide in-house training on forex management, facilitate round table debates, chair panels and talk at seminars. Valufin’s passion is to foster improvement in forex knowledge and push for improved quality of service delivery and transparency by currency providers.

Project management – Valufin can deliver short term projects, hand over to your internal staff and review periodically if required.

SOFTWARE – BESPOKE PLATFORM – FOREX RISK MANAGER (FRM):

Valufin offers top of the range software, we have developed our own Software-as-a-Service (SaaS) product. We can provide you with the tools to dynamically manage your exposures to currency and track all currency provider activities. Our software is fully transparent, giving clarity on all transactions, correct accounting and costing, and valuable “what-if” analysis.

Forex Risk Management (FRM) supports the accurate accounting and reporting of information, replacing risky spreadsheets typically used for this purpose, reducing the administrative strain for yourself and your team. The complete visibility provided by FRM allows your hedging position to be continuously monitored and adjusted. Stress tests are used to ensure your risk appetite is correctly aligned to your hedging strategy.

SOUTH AFRICAN FOREX

In addition to the United Kingdom operation, our sister company in South Africa supports companies and individuals who transact across South Africa’s borders.

Exchange control regulations are rigorous, so a key service in South Africa relates to helping companies and individuals navigate the challenges when remitting money offshore legally and effectively.

We help with Revenue Office (SARS) and Reserve Bank (SARB) clearance, application documents, mandates, declarations and transaction forms that need completing. Guiding you from start to finish we ensure that the full process runs smoothly whilst negotiating rates on your behalf and advising on timings.

CASE STUDIES:

Case Study – Impact on Net Profit of Forex Management for a Medium Sized Business

Company is a manufacturing business that imports approximately 10% of turnover in components from China and manufactures finished products sold locally and in the USA, Europe and Africa, foreign sales contributing about 45% to gross turnover.

There are currency opportunities to net off common USD values, but due to timing differences it is often best to manage to base currency. The FD has full visibility of transactions, and has 24/7 access to the online currency portal to plan payments, check receipts, fund accounts and arrange currency conversions.

Valufin negotiates the rates, chooses the right provider and product to maximise benefits. Valufin proactively responds to market movements relative to the portfolio of import and export requirements and buys for imports and sells for exports when advantageous. Considerations include currency rates, interest rates, expected movements, internal costing rates, price sensitivity, relative size, credit lines and instruments. Valufin as a management team member helps with the export pricing strategy, risk appetite definition, aligning of remuneration plans and reports currency activity to the Board.

Valufin works with the FD and finance department to ensure that the accounting entries reflect the correct conversion rates, the profit and loss is reflected per transaction accurately and supports the preparation of the relevant accounting reports for finance department, sales and the Board.

The company has improved its cash profit return by £864 576 from £5 833 300 to £6 697 876, which has increased the net profit percentage from 11.67%% to 13.40%, an improvement in the net profit of 14.82%.
 

Case Study – Forex Management for a Small Business

Company is in the music industry, the business involves musicians, tours, records, licenses, managers, staff, events, venues, travel etc. The Company incurs costs to be paid locally and internationally and generates revenue locally and internationally.

The international revenues equate to 65% of total income and the company pays costs internationally which equal about 50% of the total revenue.

Certain income and costs are net off when income and costs relating to a tour tie into the same accounting period. The net off values are not material and prudent forex management provides the required currency when needed.

The band members and staff use local credit and debit cards internationally. For prudency, the extra 3% that is seen as additional savings on this kind of spend has not been factored into the calculations.

The manager has full visibility of transactions, and has 24/7 access to the online banking portal to plan payments, check receipts, fund debit cards and arrange currency conversions. When conversions are larger than the average (figure is agreed) then a call to Valufin secures an even better rate.

Valufin provides proactive input to converting currency when the markets reflect improved rates and proactively engages to negotiate these rates.

Valufin works with the financial person to ensure that the accounting entries reflect the correct conversion rates, the profit and loss is reflected per transaction accurately and supports the preparation of the relevant accounting reports for forex risk.

The company has improved its cash profit return by £260 850 from £750 000 to £1 101 850, which has increased the net profit percentage from 15% to 20.22%, an improvement in cash of 34.78%.

QUESTIONS & ANSWERS:

Why use Valufin?

Valufin is an independent foreign currency management consultancy offering clients a full range of services typically only afforded by large FTSE organisations. Supporting businesses that trade across international boundaries, we manage their currency risk. We seamlessly integrate with our clients and help create a forex strategy aligned to the company corporate objectives, thus allowing management to run the business without the constant worry of the impact currency movements might be having.

What are the differences between the services a broker/bank can provide over those of Valufin?

Brokers and banks offer a multitude of forex products and options with differing margins and built in costs. Currency providers need your transaction in order to generate their revenue, without a full understanding of your business or your risk appetite, they will action your instruction. Valufin are independent of the currency provider, we do not provide liquidity or handle your money, instead we work with a multitude of carefully selected currency providers and as a result are able to pass on the best products, systems and margin savings to you, the client.

How much does Valufin’s service cost?

We are independent of any bank or broker and are not transaction driven. Our revenue model is to earn management fees which ensures that the focus is on what is right for you and not on driving a transaction.Valufin charges either a monthly retainer, or a percentage on gain or value – as appropriate to your needs. To determine the best solution, we need to understand your needs. A guide being that the savings on the rate and portfolio management will exceed the cost of the services, resulting in a net gain to the bottom line.

I’m happy with the services my broker/bank currently provide, why should I use Valufin?

As mentioned in Q2, our services are completely different to that of a bank or broker. Valufin changes how forex is managed. We sit between the client and the currency provider, working for you, our passion and motivation is to ensure that you have the best of everything in order to make the necessary savings and improve your profit margin.

What benefits can your bespoke software, ‘Forex Risk Manager’, offer?

Forex Risk Manager (FRM) is our very own internally developed SaaS product which provides you with the tools to dynamically manage your exposures to currency and track all currency provider activities. Our software is fully transparent, giving clarity on all transactions, correct accounting and costing, and valuable “what-if” analysis. Forex Risk Management (FRM) supports the accurate accounting and reporting of information, replacing risky spreadsheets typically used for this purpose and reducing the administrative strain for yourself and your team.

What are the contract terms of Valufin?

Valufin’s contractual terms are initially 90 days, with a 30-day notice period thereafter for either Party.

How are Valufin’s results measured?

During the onboarding process we record your current strategy and the rates and fees that you are achieving. Moving forward we are then able to directly benchmark the difference between the newly implemented strategy and what you would have achieved using your old procedures.

How long has Valufin been operating?

Valufin has been operating in the UK since 2009, however the Valufin service has been tried and trusted since 1988 when Valufin’s predecessor, Constancon Currencies, was formed.

Is Valufin a global offering?

Valufin has a wide range of clients from all over the world. We pride ourselves on being a truly global offering and have relationships and software in place to allow you to fully centralise your FX treasury. We have a sister company in SA which we use for individuals who transact across South Africa’s borders with its rigorous exchange controls to negotiate.

What do Valufin do differently?

We do not touch the money! Valufin works closely with all members of your team to fully understand your business objectives and then provide information and advice that is tailored specifically to you. Being independent allows us to hand pick the products and services that provide you with a solution that best fits your requirements.

How much money could I save by using Valufin?

Typically our customers see an increase to their bottom line in excess of 3% of their FX turnover.

Is Valufin regulated?

Valufin does not need a license with the FCA. Valufin is not a money broker and our customers’ money does not pass through our accounts.

Do I need to open an account with Valufin?

No, we open an online account on our customer’s behalf with whichever broker or bank is the best fit for the individual client’s needs, if current facilities are not satisfactory. We are currently working on our own online platform and our customers will have access to their information and reporting as part of the service.

Do the services offered by Valufin jeopardise any of my company’s staff?

Absolutely not! We see our presence as a collaborative one. We work with our customer's finance team, taking direction from them and in turn, offering our advice. We aim to educate our clients staff on how forex interacts as part of their business, not as something operating in isolation.

What level of interaction is there between Valufin and my FD?

This is entirely up to each individual customer and FD. We produce daily, weekly and monthly reports for our customers as a minimum. Some of our clients like to be in contact every few days, whereas some prefer a more hands-off approach. We tailor every aspect of the service to suit each customer.