The challenge
Managing the currency markets
Intellectual property matters often span the entire globe. As such, lawyers at Angelo IP utilize a network of foreign associates to help file and prosecute patent applications around the world, in an effort to help clients secure royalties from intellectual property. Due to the nature of this work, the team regularly handles the payment of foreign invoices for clients, which involves a complicated and inefficient billing process.
Prior to engaging Convera, the team would send clients a proforma for an invoice payable in a foreign currency based on the day’s exchange rate. However, once the foreign invoice was actually paid, often 30 days later, the exchange rate would be different. This had to be noted in the accounting system for each instance and due to the number of clients, filings and currencies, the manual effort was overwhelming. Additionally, the exchange rates used for billing by the firm were not optimal.
The situation faced by Angelo IP is a common one. Intellectual property law firms typically issue and pay invoices to parties in multiple jurisdictions and because exchange rates shift daily, system adjustments are necessary to maintain accurate billing records. Angelo IP recognized a need for automation in terms of invoicing and began looking at ways to reduce its fx exposure to improve invoicing efficiency.
The solution
An online platform and currency hedging
To address the firm’s major concerns regarding manual invoicing and foreign exchange risk in a single solution, Angelo IP turned to Convera’s online payments platform GlobalPay, and began using future payments to lock-in exchange rates. Now, the firm’s staff can enter foreign proforma invoices into the system and lock in the day’s exchange rate for up to eight months. Once the client submits their payment, the firm can then pay external foreign associates while knowing their final cost in advance. In addition, the exchange rates Angelo IP receives have been an improvement from their previous provider.
The results
Cost savings and reduced administration
Angelo IP is now able to manage its payment process with increased ease and accuracy, at a lower cost. Convera’s GlobalPay platform has addressed the firm’s original concerns about excessive paperwork, and currency hedging with future payments has allowed for more predictable exchange rates. The resulting cost savings were an unexpected bonus for the firm.
While it is easy to appreciate how this simplifies our process and saves the attendant expense, we have also saved a substantial amount of money in the exchange rates that Convera provides when paying foreign associates in their local currency. Their exchange rates are better than our bank offered. I would recommend Convera as their service has become a mission critical part of our international practice.”
Basil M. Angelo
Founder and CEO of Angelo IP
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