A Canadian Software company with product distribution internationally, was struggling to find an alternative solution to accepting and holding foreign currencies as payment. With operations in Europe, Australia and the United States, bringing revenue back to Canada meant that these currencies, once received, would need to be immediately exchanged to Canadian Dollars in order to hold the funds in their account.
The company did not hold multiple accounts for each type of currency they received so payments were being directly wired into their Canadian bank account. This meant that they were paying a premium on the exchange to be able to immediately deposit the funds. This was the process they have been using for years as they didn’t know they had other feasible options. They accepted the losses on the exchange and saw a regression in their profits.
Danielle Eloschuk, a Senior Analyst at Olympia Trust, reached out to their accounting department and offered a better option for holding and exchanging foreign currency.
She set up a multi-currency account for the company which allowed them to hold different currencies in the same account without paying any additional fees. In addition to holding funds, this account allowed for customers to pay directly into this account, eliminating the need for a third party bank.
Not only did this streamline their incoming payment processes, they also saved up to 5% on their monthly revenue which put an additional $8,000 on their profit statement each month. Danielle also discussed strategies such as holding the funds on account until the markets are more favourable to exchange and helped set up market orders to automate this process.
The first year using Olympia’s multi-currency account has already saved the company close to $100,000 and has allowed them to focus on expanding their reach to new international destinations. Danielle continues to manage their account, offering solutions to protect their profits as they continue to grow.