In recent posts we’ve looked at how to ensure visibility and control over expenses whether your artists are on tour or in the studio. We’ve looked at finding the balance between streamlining life on the road, enabling artists and crew to handle issues or opportunities as they arise while still staying on top of costs.
Now, let’s look more closely at the international dimension.
International expenses can come with a nasty sting. Banks and card companies often levy hefty ‘foreign transaction’ charges and the exchange rates can be seriously uncompetitive.
It bites both ways, too. Not only do you suffer on the costs you incur, you receive less for your incoming revenue streams like tour receipts or royalties.
But international payments, foreign exchange and expense management shouldn’t be an expensive drag on your operations. Your artist clients demand agility, clear communications and responsive service. To deliver, you need systems designed for the most demanding customer scenarios, to make your operations as effective and efficient as possible, wherever your artists are located.
Here are a couple of considerations for improving transaction efficiency and avoiding excessive charges when money moves across borders.
1. Manage your money in multiple currencies
Managing a mobile, multi-currency business can quickly get expensive. On some tours, every day means a different currency.
To avoid a constant stream of foreign transaction charges on cards and unfavourable exchange rates at every turn, use multi-currency accounts and cards.
With Centtrip you can hold unlimited amounts in up to 15 currencies in a single account. You can transfer up to £200,000 per day between account and cards instantly and hold up to £350,000, again in 15 different currencies, on each Centtrip prepaid Mastercard.
When it comes to making payments, you can spend up to £150,000 in a single card transaction, online or in-person, and withdraw up to £4,000 daily from 2.1 million ATMs worldwide.
Payments or transfers between Centtrip accounts are instant and fee-free, while off-network payments (like SWIFT, SEPA etc) can be executed quickly at competitive rates.
2. Develop a currency strategy
Whether you've just sold your songbook for $100 million or you have touring or streaming income in another country and currency, foreign exchange fees can have a significant effect on what finally hits your artist’s bank account.
It pays to plan ahead and have a strategy that minimises transaction costs and exchange rate risk.
Many organisations choose to work with a currency dealing desk as an extension of their finance teams. This gives them access to market knowledge and expertise “on demand” as they plan and execute a currency strategy.
Engaging with a partner early in your budgeting process, or project planning, can help you embed currency strategy into your operational processes and to plan for likely hedging requirements.
Professional currency dealers can also advise on policies such as regular international payment dates or target rates. For example, is a nice, round rate like 1.30 really in your best interests, or would a less psychologically appealing rate like 1.295 produce a better outcome?
Building a partnership means that the currency desk becomes familiar with your business model, your currency requirements and your appetite for risk which enables them to become a more proactive contributor to your currency strategy.
If you would like more information on this, download a copy of our free Centtrip Guide, How To Develop Your Currency Strategy.
“Our clients are leaders in their fields – world-renowned artists and athletes. When we were looking for help with foreign-exchange and international payments we went to a company at the top of their game. Centtrip really stood out to us because they understood our needs and those of our clients, and they offered exactly what was needed and more. Their multi-currency platform enabled us to access live markets, saving money and time.”
Charles Bradbrook, Partner, SRLV
Centtrip was designed for the most internationally dynamic business operations
Centtrip is an award-winning provider of multi-currency payment, exchange and expense management solutions for an increasingly borderless age.
We make life simpler, safer and more rewarding for artists, management, labels and other organisations – like film studios, yacht management companies and family offices– that manage multiple, internationally-mobile teams and assets.
Our award-winning solution gives you real-time, anytime visibility and control over multi-currency deposits, international payments, foreign exchange and multi-currency cards. We help you streamline payments, reduce currency and cash-carrying risk, and optimise international income flows.
“Centtrip helps us make tangible financial savings and maximise each foreign-currency transaction by providing expert market insight. It’s a game changer.”
Bill Curbishley, Trinifold Management (The Who)
If you’d like to know more about how Centtrip can support you and your artist-clients, please visit centtrip.com/music.