Margin Finance is a unique term coined by Secure FX, a funding mechanism that addresses the widening gap between SME’s and their larger competitors. After many years of working with SME’s to address the distinctive challenges they face, when doing business in a global market place, Secure FX have found a solution, one that will firmly and fairly enable SME’s in South Africa to compete, and contribute, in a meaningful way to support economic growth and development in South Africa.
Margin finance enables a business to secure a favourable Forward Exchange Contract for international trade, without having to dig into cash reserves that are desperately needed for day to day expenses.
The funding is secured as a layer of short term finance over and above traditional bank loans or credit channels. The finance enables the business to guarantee their costing’s and price more competitively to their end user, and the cost is priced into the Forward Exchange Contract with no risk to their cash flow.
Secure FX has embraced this opportunity and working with skilled, experienced and passionate people have created a solution that provides a win for everyone
Benefits to securing a FEC with a guaranteed rate of exchange include:
- An increase in profitability
- An increase in competitiveness
- Guaranteed rates so both local and global currency volatility wont impact on the business