Skip to content
TIMEFX LTD
Login

Industries

Production plans are made months ahead. Rates are not.

Manufacturers commit to input costs long before they settle them. That gap between quoting a job and paying for the materials is where currency movements quietly reshape a margin.

The manufacturing currency problem

A manufacturer's cost base is rarely domestic. Steel, resins, electronics, packaging and machinery all tend to be priced in euros or dollars, even when the supplier is nearby. When you quote a customer, you fix your selling price using assumptions about what those inputs will cost in sterling. Every week between that assumption and the actual settlement is a week in which the assumption can drift.

Long lead times make this sharper than in most sectors. It is not unusual to place a component order in one quarter, take delivery in the next and settle the balance in the one after that. The order is committed, the customer price is committed, and the only variable left is the exchange rate.

How TimeFX helps

We start by mapping how money actually leaves and enters the business: which currencies, which suppliers, what size, and — most importantly — when. That map usually shows a small number of recurring flows and a handful of larger, dated commitments, and those two groups are handled differently.

Recurring flows benefit from multi-currency accounts: hold the currency you regularly spend, pay directly from that balance, and stop paying to convert in both directions. Larger dated commitments are where currency risk management becomes relevant, so a rate can be fixed for an amount you are certain you will need. Both sit on top of ordinary international payments for day-to-day settlement.

An illustrative example

Suppose a fabricator agrees a EUR-denominated order for tooling, payable in three stages across six months, and prices the finished contract on the sterling cost of that tooling today. If the rate moves against them before the later stages fall due, the sterling cost of the same tooling rises while the customer price stays fixed. The order was profitable when it was quoted; it is less so by the time it is paid.

This example is illustrative and uses no market data. Whether hedging is appropriate depends on how certain the underlying commitment is, and forward contracts are subject to eligibility, approval and the provider's terms.

Typical currency touchpoints

  • Raw materials bought in EUR, USD or regional currencies
  • Components and sub-assemblies from overseas suppliers
  • Capital equipment and tooling, often staged payments
  • Maintenance contracts and spare parts billed abroad
  • Export sales that bring foreign currency back in

Where we help

Paying suppliers in their own currency, holding balances so recurring costs do not need converting twice, and explaining the tools available for committed future payments.

Suitability

This is usually a fit if you recognise two or three of these.

Operational signals

  • You buy materials or components priced in a foreign currency
  • Your suppliers quote in EUR or USD even when based elsewhere
  • Lead times mean you commit months before you settle
  • Capital purchases are paid in stages against a project budget

Financial signals

  • Your quoted margin assumes a specific input cost in sterling
  • You convert the same currency in and out over a year
  • Your bank's cross-border charges are hard to reconcile
  • You would rather budget with a known rate than a hoped-for one

Process

From first conversation to settled supplier payments.

  1. 1

    Map the flows

    We list the currencies you pay and receive, typical values, and how far ahead each commitment is made.

  2. 2

    Agree the setup

    Which currencies to hold, which payments go out as ordinary transfers, and whether any committed amounts warrant fixing a rate.

  3. 3

    Onboard

    You complete an application and we carry out standard KYC and AML checks under the regulatory framework for UK payment services.

  4. 4

    Run and review

    We stay as your contact, help with supplier details and revisit the setup as your production plan changes.

What you should know before you apply

  • Regulated execution

    Payment, e-money and FX services are provided by our regulated payment provider, authorised and regulated by the Financial Conduct Authority. TimeFX does not hold customer funds.

  • Rates move both ways

    Fixing a rate removes uncertainty, including the possibility of a favourable move. Forward contracts are subject to eligibility and the provider's terms.

  • Timelines depend on checks

    Onboarding speed depends on the completeness of the information supplied and the structure of the business, so we set expectations rather than promise dates.

  • Route matters

    Some destinations settle on local rails and others route via correspondent banks, which affects timing and cost. We confirm what applies to your routes.

  • Costs are discussed openly

    Pricing reflects the currencies, volumes and tools you actually use. We explain the cost of a transaction before you agree to it.

  • Guidance, not advice

    We explain how the products work so you can make an informed decision. Nothing here is regulated financial advice.

FAQ

Questions manufacturers ask us.

Related services and reading

Get started

Plan ahead for currency movements

Forwards and structured tools help protect margin when rates move. Talk to us about your exposure window.

We respond to enquiries within one UK business day.

Apply now Discuss FX riskCall +44 20 8987 8083