Spot deals
A Coffee farmer wants to cut out the middleman and sell directly to sellers in Europe, which boosts his company’s revenues and improves its profit margins. The buyer is happy to deal directly with them, but they want to pay in EUR, not KES, which is the main cost base for the farmer.
They reach out to their dedicated Mbele FX account manager to sell the EUR into KES, which we do at an agreed rate, typically outperforming the bank. We provide them with a EUR account for the buyer to pay and deliver the KES the same day to the farmer’s bank account; no fees, no fuss.
Forwards
As the business grows, the farmer realises that whilst the EUR revenues are staying the same, the amount of KES he is receiving each month changes depending on the prevailing rate at each spot trade. The market volatility is making forecasting and budgeting difficult and means that, in reality, his costs are moving around when his revenues are staying the same.
Their dedicated account manager at Mbele works with them to get an idea of the expected EUR revenue over the next 12 months and book a series of forward contracts to ensure that they always sell EUR and buy KES at the same predetermined rate each month. Making the business easier to manage and allowing the farmer to focus on other more critical parts of developing the business.
Market order
After noticing the large volatility in the EURKES market the finance team at the firm decided to hedge on 70% of their expected currency exposure with Mbele and leave the rest to the spot market. Using market orders, we place target rates with our banking partners so that when those levels were reached, even for a few seconds in the middle of the night, a spot trade is automatically booked. These tools ensure the market is working for our clients around the clock. These products can target positive moves in the market or protect you from moves against you.
File upload and mass payment
As time passed, Mbele FX started working with the finance team at the coffee farm to improve their processes. They realised a lot of time and financial capital was used to make their monthly payroll and invoice payments to suppliers and contractors. Using Mbele’s market-leading online platform, they could upload all of their payments on one formatted spreadsheet to our online platform and make all the payments in one go, at the click of a single button. Settling in any number of currencies of their choosing.
Innovative Crypto Payment Solutions
Due to their continued success, the coffee farm decided it wanted to expand. Unfortunately, their local banking partner doesn’t have the liquidity to regularly sell them the amount of USD they need to purchase the materials and equipment. This puts their plans on hold for several months while they wait for their local bank to replenish their USD reserves, and they miss out on increased demand and margin on their products.
Our innovative crypto solution solves this problem by allowing them to utilise the crypto market to add liquidity. Their business is not held back by their inability to buy USD to pay for imports quickly. It works if they buy a stable coin, like USDT or USDC, which is pegged to the US dollar and holds its value.
The stable coins are transferred to an international crypto-exchange through the blockchain. It is sold back into USD and delivered to their bank account or directly to their suppliers to pay invoices. We managed all of the back-end processes and the delivery to their beneficiaries.
All rates, delivery times, and beneficiary accounts are agreed upon before booking and receiving the coffee company’s funds.