OPINION
IS YOUR LAW FIRM GOING GLOBAL? about currency fluctuations between invoicing a client and the payment’s due date, you may want to lock in exchange rates. This reduces your exposure to currency risk, and enables you to bill clients fixed amounts, safe in the knowledge that the amount budgeted for is the amount coming in, and can give you more security of knowing that wherever the market moves, your profits are protected. NO NEED FOR CURRENCY BANK ACCOUNTS The last thing you need is more admin to deal with, so you will probably want to avoid opening a currency bank account. In fact, if you are not going to have equal incomings and outgoings of that currency, they can be a false economy.
According to findings from the State of the UK Legal Market 2021 report from the Thompson Reuters Institute, ongoing pressures, such as the effects of the coronavirus pandemic and Brexit, are causing disruptions and the shifting of priorities in the UK legal market.
KEEPING COSTS LOW If you are just making the occasional bank transfer overseas, your first thought will be to utilise your current banking relationship. However, Bank transfers may not always be the most convenient way to make international payments.
The report found that the demand for cross-border legal advice had increased since 2017 because of the uncertainty caused by Brexit. Specifically, 80 percent of UK corporates were looking for international legal support, and 47 percent of UK corporate legal spend was dedicated to international legal work.
A good provider will have a comprehensive global footprint, enabling you to pay foreign associates in multiple countries and territories, using your home currency, without the need for overseas bank accounts.
Meanwhile, COVID-19 has created global opportunities for many law firms who now have clients all over the world being serviced virtually. The scope for expansion is huge but moving into new markets can be intimidating. However, there is a way for UK legal firms to take advantage of the new opportunities and it may not be as daunting as you think. WHAT IS STOPPING YOU? SOME COMMON AREAS OF CONCERN: You may need cross-border transactions to facilitate payments for intellectual property, or cases related to immigration. Or perhaps you have expanded overseas and need to organise your foreign associates’ payroll and payments, and foreign office funding. Whatever the reason, any organisation making international payments for the first time has concerns and questions about how it will all work. 16 www.birminghamlawsociety.co.uk
With a payments provider, incountry banking relationships enable transfers to be treated as local currency transactions, reducing wire charges and your firm’s expenses. Bank reconciliation is quick and easy with fully referenced payments and statements. You will also need to keep an eye on any incoming payments. If bank fees are applied to these, you may receive less than your invoiced amount, so make sure your provider has a transparent charging structure. Managing the risk of currency fluctuations. Another concern when entering the global arena, is currency exposure risk. Creating a risk management strategy will help you optimise your cash flow and mitigate the risks of currency fluctuation, giving you certainty and control. A good payments provider will work with you to develop a strategy in line with your business goals. If, for example, you are concerned
A specialist payments provider can offer other solutions, such as holding balances. You can store incoming payments free of charge for up to 90 days. This gives you control over your funds, flexibility to secure favourable exchange rates, and the ability to make same day payments, reducing your currency risk exposure. A TRUSTED PARTNER Western Union Business Solutions provides payment services for over 600 law firms globally and can equip you with the solutions you need to send, receive, and manage international payments. We have an extensive global network, spanning 200 territories and 130 currencies, and an in-depth knowledge of local markets and compliance. Our skilled team of legal industry experts will work in partnership with you to design a customised solution, to help simplify your international payments, payroll and invoice workflows. We provide seamless integration with our payment platform, which can process up to 200 invoices a day, helping you to focus on servicing your clients, and make the most of your billable hours. Reports and notifications can be automated, and our team will work with you to adhere to your own approval flow. For further information about Western Union Business Solutions on how can we support the Legal sector please contact our partnership manager to set up a free non-obligatory meeting or visit www.wu.com
