Foreign exchange (FX) advisory - forecasting
We offer comprehensive and professional foreign advisory services to companies whose business involves incurring currency risk. On behalf of our clients we will supervise all processes related to management of foreign exchange transactions on individual basis. We help the clients efficiently execute transactions on the interbank market, thoroughly managing both current transactions and hedging operations. For several years of conducting business activity we have got to know clients' needs and problems they face on currency market really well. Over the years we have developed efficient methods of solving these problems. Our business activity not only brings about real significant savings but also improves processes regarding company's finance management, information flow, planning and supervision.
In the area of current foreign exchange transactions we provide our clients with complete and professional support through:
- Timing - choosing the right moment to effect current foreign exchange transactions. Very high exchange rate volatility is the reason why choosing the right day, or even time, to make monetary transactions plays such a crucial role and constitutes a source of significant savings for the company. We know that our clients expect from us decisions and answers to the key question that is, when to make a transaction, regardless of whether it is a matter of several hours or a few days. We also know that the right decisions might result in savings of more than a dozen or so thousand zlotys a day.
- Currency forecasts: – our clients value us for conciseness and clarity of the presented forecasts. Credos' analysts provide the clients with specific instructions regarding particular currencies within the desired time limit. We know that our clients are not interested in the "it- might-go-down-or-it might-go-up" type of forecasts.
- Negotiations with the banks: – we represent our clients in most bank dealing rooms in Poland. Experience and professionalism in doing business with the Dealers as well as complete independence guarantees our clients the best (fair) conditions as regards making foreign exchange transactions in banks, practicably irrespective of the scale of your currency turnover and previous bank conditions.
- Current transaction management: – in addition to measurable financial benefits, our clients win professional support for streamlining processes related to foreign currency transactions that is, the flow of information, planning, competence, supervision, monitoring and reporting.
- Forex hotline - we have access to current information reaching us simultaneously from many professional and reliable sources. Quick receipt of data and market information, processing thereof, appropriate selection of the most relevant information and delivering it to the end user allow our clients to save time and reduce costs. At the same time, our clients might focus on primary profile of their business activity feeling comfortable knowing the processes that occur in the market environment.
Foreign currency advisory - security
High volatility of exchange rates in the long run poses a danger of losing profitability of commercial contracts executed by importers or exporters. In case of companies going into debt in foreign currencies, long-term adverse currency trends might significantly increase financial costs. In extreme situations, as showed in recent years, companies might face bankruptcy.
It is not always possible to eliminate foreign exchange risk, but it can be managed effectively. We offer our clients professional services consisting in creation and implementation of security policy. The purpose of such policy is to minimize the impact of adverse changes in currency exchange rates, decrease the resistance of given company's finance to market shocks, thereby ensuring long-term stability.
In the area of security we provide our clients with comprehensive and professional support through:
- Analysis and evaluation of currency exposure - before taking any actions related to security we will thoroughly analyse our client's currency exposure. The key objective of this stage is to assess the degree of the company's organizational readiness to introduce security policy.
- Formulation of professional security policy – we create a set of solutions adjusted individually to our client's situation. Our security policy regulates all activities taken by the client in the area of hedging transactions. This policy defines, among other things, the rules of concluding hedging transactions, governs the competence of particular departments/ individuals involved in the risk management process, and indicates the methods of supervising, reporting and transactions authorizing. Indirect purpose of security policy is also to streamline the process of information flow followed by its incorporation into current financial culture of the company by creating and describing relevant procedures.
- Assessment of the strategies and instruments offered by banks – with great experience, expertise and access to professional analytical tools, we are able to assess financial instruments offered by banks. We analyse and evaluate even the most complex bank products in terms of their practical utility for the client.
- Hedge accounting – our experienced specialists in the area of foreign exchange market and accounting help to implement and keep hedge accounting (IAS 39).
- Trainings for the client's personnel as regards hedging transactions – we care about the level of knowledge of our clients by organizing professional trainings as regards foreign exchange market and hedging transactions of different advancement levels.
EU grants - settlements
Was your company provided a subsidy from the European Union? Congratulations, it is great success with which we are very pleased. We are the beneficiary of EU grants ourselves and we are aware of the fact that being granted a subsidy is really just the beginning. Non- refundable financial assistance entails many challenges regarding timely reporting, fulfilment of vague criteria, maintaining communication with authorities responsible for subsidy payment and follow-ups. Settlement of such project, which is often more difficult than actual preparation of the application or obtaining grants, is necessary to make the success complete. This process must be carried out in accordance with contractual provisions or approved plans mentioned in the application. Changing reality of business makes it difficult sometimes. Settlement of projects funded by the EU is a laborious process of reporting, documenting the completed tasks as well the incurred costs. Additionally, applicants should also make the effort to meet requirements which qualify costs for refunds. We have gone through this process many times. We will be happy to do it again.
Financial analyses / Business plans
Financial analysis is a very useful tool for diagnosing general and specific situation of given company; it also facilitates taking decisions related to further stages of development.
Such analysis should be prepared in the course of planning financial liquidity, profitability level or expenses to be incurred for investments. Each investment requiring external funding involves the need to prepare professional business plan. Financial institutions expect information prepared in accordance with their own guidelines and schemes. Such analysis is also a valuable source of information for management boards, since it often allows the boards to look at processes occurring in a company from different perspective.