Protect your business margins effectively with HanzePay's flexible term contracts
Operating outside the Eurozone inevitably entails currency risks for your business. Constant fluctuations in exchange rates can affect the value of amounts expressed in euros, putting pressure on your profit margins. Fortunately, it offers HanzePay a simple and cost-effective solution to limit these risks: forward currency contracts.
![](https://cdn.prod.website-files.com/663a2178d508df7c95ed42a3/6662e79dbfdfefeaa3f40538_Main-Animation_01_High.gif)
What are forward contract at HanzePay?
A forward transaction is a financial instrument that allows you to hedge the exchange rate risks of Forward foreign currency transactions.
If you expect to receive or pay an amount in a foreign currency in the coming weeks or months, a forward currency transaction can provide you with advance certainty about the exchange rate for that specific amount.
This way you can protect yourself against unwanted fluctuations in the exchange rate and you have clarity in advance about the amount you will receive or pay in your own currency.
How does it work at HanzePay?
In a flexible forward transaction we fix one exchange rate, also called the forward rate, for a certain amount and a certain period.
1
![](https://cdn.prod.website-files.com/663a2178d508df7c95ed42a3/665432cb44fa497bf8946f8d_Vector%2018.png)
2
All Forward world payments in foreign currency or exchanges into euros will take place at this fixed exchange rate until the balance is used up.
![](https://cdn.prod.website-files.com/663a2178d508df7c95ed42a3/665433605cbc60da2d4c042e_Vector%2019.png)
Entering into a flexible term transaction is simple and can easily be arranged through the platform. You indicate the period for which you expect payments and the total amount you want to cover
3
![](https://cdn.prod.website-files.com/663a2178d508df7c95ed42a3/6654348d2511fcdc91a0e4f7_Vector%2020.png)
4
After your agreement, you will receive a competitive flexible term interest rate from us. Once the transaction is confirmed, we require an initial 5% deposit
![](https://cdn.prod.website-files.com/663a2178d508df7c95ed42a3/6641b7f7b3de86bb27820128_Rectangle%2018%20(4).webp)
![](https://cdn.prod.website-files.com/663a2178d508df7c95ed42a3/6641b94b5c316d24d47af49e_Rectangle%2017%20(2).webp)
Are you expecting a payment in foreign currency?
with the payment details, including the amount you want to transfer and the beneficiary details. The transaction is executed at the determined forward rate, after which we pay the beneficiary very quickly. The balance of the forward transaction is then reduced by the amount paid. For every forward transaction we require a deposit of 3% to 5% on the total amount.
Open an account![](https://cdn.prod.website-files.com/663a2178d508df7c95ed42a3/666069938651107e705975e6_Frame%2018415%20(5).png)