How can we help you?
Monetor is a cloud platform that provides automated hedging against the risk that currency fluctuations will kill your hard-earned profits. Large corporations use banks and complex financial products like forwards to protect themselves against this risk. Monetor applies only ‘normal transactions’ between your internal bank accounts to achieve a similar effect.
Monetor works through carefully tracking your ‘exposure’: payments in other currencies that you know are coming up. What we then do, is find the best time to buy the currency you need, in line with how much FX risk your company is willing to assume.
Create an account on monetor.com if you don’t have one already, and complete the 4 onboarding steps. One of the steps is to tell us how much FX risk you are willing to take. Let us know about your ‘FX exposure’ by uploading a spreadsheet with purchase orders and invoices in foreign currencies that you have received in the past, and that are still coming up.
Based on your risk profile, the system will start tracking immediately. Once you are familiar with the workflow, we can automate your protection end to end. Contact us at firstname.lastname@example.org and we will connect your environment to your accounting software so that Monetor is always aware of your current and future risk. Don’t worry – we don’t disclose your data to any 3rd party.
The banks can normally help with your currency risk protection through the products that they offer such as payments and forwards etc. Which is why Monetor is compatible with your current provisions. We are not a payment company or a bank, but we manage the timing of the engagement.
Your bank helps you with a multitude of things such as payments, insurance, loans and so on, as you know. Of course you need to have a good banking relationship.. At Monetor we work only to give you certainty and clarity when it comes to your currency policy.
Yes, you can. There is a 30-day free trial available. And on annual subscriptions, you get a 2-month discount. The support team is always available to help you out with any integrations you may need. We can also help you with the process of selecting FX risk mitigation policies that are in line with your company’s risk profile.
The FX markets are like a casino: rates can go up and give you a nice profit, or they go down and give you a loss. And there is no way to predict which way they will go – also not for Monetor! Typically the longer you wait, the larger your profit or loss will be. Then there are different currencies. Some are not risky at all (like the DKK for EUR companies), and some are very risky, like the GBP, the Russian Ruble or the Turkish Lira. On top, different companies have different exposures: some do all their business in a foreign currency, some only a fraction. Some have very long commitment times, others pay their order within 14 days.
All these factors combined drive where in the casino you are: the high risk area, or the low risk area. And your company financials drive how much money you can lose: if you are a low margin business with long commitment times (like the travel industry), you cannot afford to take on any risk. If you are a low-volume, high end designer goods importer with high margins, you can afford to take a gamble.
All this combined is called your ‘risk profile’. The risk profile should be set by the board of the company, not by the CFO or a delegate alone. Monetor then tailors its strategies around your risk profile and ensures you stay within the limits set by your board.
Monetor has a suite of analytics that uses history-based simulations based on your own data that can help you decide your exposure to FX risk and your risk profile. This will help your company to decide on a risk management policy. What we cannot and will not do, is advise you in which direction we think exchange rates will move. Because frankly, we don’t know either.
No. Our databases can handle any amount of orders you have and we will process them. But the ‘sweet spot’ for the automated spot hedging we apply is for exposures up to US$10mln or so. If the amounts get any larger we will advise buying forwards besides performing spot transactions to mitigate your risk. We will still advise on the right timing though
Payments to your suppliers are best done from your accounting system or bank interface directly. We do not wish to replace that workflow. The best setup would be to have accounts with your bank or currency trader for the foreign currencies you need, and Monetor will make sure they have sufficient funds at de-risked rates available in these accounts at the time when invoices are due.
No, Monetor interfaces with accounting systems and ERP systems for automation. If you prefer, however, it is possible to extract Excel reports from these systems and upload those into the platform also.
No, you don’t. In fact, we welcome customers that don’t understand currency. The whole purpose of our platform is to take that aspect out of your hands and handle it automatically. It will free you and your team up to focus on the things you do know well.
It is easy to add your colleagues’ email address to the system so they will receive the notifications too, and act on the alerts. Colleagues can also create their own accounts with which to access your dashboard.