80.3 F
San Fernando
Tuesday, Dec 6, 2022
-Advertisement-

The Number

AFEX, a currency exchange company headquartered in Woodland Hills, recently conducted a survey of its customers and found that 46 percent of its North American clientele expects to trade more foreign money this year compared to 2015. North American importer-exporters that plan to increase international payments this year The customer roster includes small importers and exporters, as well as attorneys, websites and local tech and entertainment firms engaged in cross-border commerce. Christian Spaltenstein, AFEX’s general manager for the Americas, was surprised so many companies plan to increase international trade this year, but it makes sense given the global internet-based economy. Many small companies have entered foreign markets through e-commerce websites such as Amazon.com Inc. or Ebay Inc., he noted, and now those companies are expanding sales overseas. “The world is getting smaller and it has to do with the internet,” he said. “Today, a company in Alabama that produces jewelry can have clientele through the internet in Africa. … It shows in the survey that more companies are getting international.” But ramping up foreign currency payments involves challenges ranging from currency volatility to fraud. Spaltenstein gave the example of a hypothetical California company that sells wine online with a published price list. If the company starts selling European wines, any fluctuation in the Euro-dollar relationship could quickly cancel any profits from the foreign wines. The system is plagued with payment failures and fraud, Spaltenstein said, which is why companies need services such as AFEX, which can mitigate risk with software and verification procedures. “Criminal entities can almost set up a false company, with all the documents, and make payments through you,” he said. “A company like ours needs tools to protect customers.” – Joel Russell

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.
-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-