Put together by cash flow and business finance experts
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What you'll find in this free e-book:
Expert insights on cash flow management: Wise’s corporate treasurer provides insights for startups and scaleups, based on in-depth experience working in one of the world’s largest FX payments providers.
Methods for managing cash flow: Key challenges in multi-currency cash flow management and strategies for solving them.
How to minimize FX risks that can impact cash flow: Learn expert tips for managing FX risk and improving multi-currency cash flow to protect margins.
Cash flow case study: Discover how a Texas based business successfully manages multi-currency cash flow.
Mo Ragab
Corporate Treasurer & Cash flow expert
Mo is a corporate treasurer with over ten years experience working within finance treasury. He has a deep understanding of cash flow management and creating effective forecasts to help businesses scale.
Hannah McGrath
Editor & Business Content Specialist
With a background as a journalist, Hannah covers key trends in business, technology and FinTech, with a focus on supporting SMEs and Enterprise companies to grow their business across borders.
Panna Kemenes
Senior Business Content Specialist
Panna has several years of experience in editing and content creation. She creates business finance articles for the US, covering essential topics from invoicing to international expansion.
What is cash flow, and why is it important?
Cash flow refers to the amount of money that is coming in and out of the business. Having a clear understanding of the amount of cash being received and how much is being spent is vital to mitigate any cash flow problems.
When it comes to operating internationally, effective cash flow management requires a focus on FX risk and understanding the impact of currency conversion on invoices, supplier payments and on your margins.
Cash flow also takes on a more strategic role when it comes to business loans or investments. Cash flow forecasts are a key indicator of whether a business is likely to be profitable. Over time, there is an expectation that revenues from sales will exceed outgoings, otherwise the long-term viability of the business could be called into question by financial providers and investors (or any creditors).
When it comes to operating internationally, effective cash flow management requires a focus on FX risk and understanding the impact of currency conversion on invoices, supplier payments and on your margins.
Cash flow also takes on a more strategic role when it comes to business loans or investments. Cash flow forecasts are a key indicator of whether a business is likely to be profitable. Over time, there is an expectation that revenues from sales will exceed outgoings, otherwise the long-term viability of the business could be called into question by financial providers and investors (or any creditors).
“Without proper planning for cashflow, even a profitable business could run into financial difficulties.”
Mo Ragab, Corporate Treasurer at Wise
Multi-currency cash flow risks
Cash flow problems can be a common issue for international businesses. There are more factors and risks to consider than with domestic cash flow, such as:
Late payments from overseas customers
Miscalculated global expansion costs
Exchange rate fluctuation
The unexpected costs and process of international payments
Preparing a cash flow forecast without considering these factors can be detrimental to your business cash flow over time.
Read about how to manage these factors and more in our detailed e-book.
Preparing a cash flow forecast without considering these factors can be detrimental to your business cash flow over time.
Read about how to manage these factors and more in our detailed e-book.
You are a US business owner invoicing a customer
in France for €10,000
Exchange rate on date of invoice is 1EUR = 1.09 USD = $10,900.00
Exchange rate on date of invoice is 1EUR = 1.09 USD = $10,900.00
Customer waits 90 days to settle invoice
€1 is now worth $1.07 = $10,700
€1 is now worth $1.07 = $10,700
Your bank charges $275 transaction fee to convert euros to dollar
You receive $10,425 Total lost: $475
You receive $10,425 Total lost: $475
Wise Business: International Cash Flow Made Easy
If your business needs to operate in multiple currencies, check out the Wise Business account.
Doing business overseas can help scale operations, but FX rates and hidden fees in cross-border payments can eat into profit margins. Managing these risks effectively can make or break a business, especially if they're just starting out.
This is where Wise Business can help. With one account for multiple currencies, it’s easier than ever to handle international payments. You'll always get the mid-market rate, and there are no hidden fees, so you can calculate your international spend accurately.
You can also integrate your Wise Business account with QuickBooks, Xero, or other popular accounting tools. Reduce the hassle of reconciling accounts and managing multi-currency cash flow, and watch your company grow.
