As many companies in Northern Ireland have already discovered, the euro has opened up new trading opportunities. Since our close neighbour the Republic of Ireland is part of Euroland, many businesses regularly trade in the currency.
Trading opportunities of Euro Funding
There are cost savings available to importers and exporters by rationalising currency dealings, especially as a significant amount of all non-sterling trade is transacted with Euroland. If you are an exporter with a Euro income, then you may be able to replace sterling with Euro borrowing on Hire Purchase.*
Advantages
- Possibly reduced borrowing costs with euro interest rates, which may be lower than UK sterling interest rates
- Quarterly repayments, so you only need a euro balance every three months to cover borrowing charges
- Assets invoiced in euros or sterling, with balances transferred into euros on drawdown date
Disadvantages and risk factors
- Reduction in euro income to service euro borrowing
* Customers should be aware that the GBP/EUR exchange rate is not fixed and euro positions therefore carry a potential currency risk.