Forward Contracts

Accept funds in foreign currency and choose when you want to convert your payment into your own currency.

There are two types of Forward Contracts, Fixed Date and Window Forwards. A Fixed Date Forward is a standard forward that allows you to buy or sell currency with delivery for one specific date in the future, out to 12 months. A Window Forward allows you to set a predetermined window of time which allows you to draw funds from the Forward as often as you require.  This gives you the freedom to access your funds as they are needed without having to commit to an exact time-frame.  The funds can be drawn at any point in the window or until the payment becomes due. Like the fixed date forward, these forwards can be rolled forward if the amount is not needed within the original window.

Both Fixed Date and Window Forwards allow you to buy or sell currency at today’s exchange rate, but you not pay for it until a date in the future that you specify. This freedom allows you to take advantage of favorable rates of exchange without having to commit to paying until the currency is needed, keeping that cash free for other uses. All you pay at the time of booking the forward is a small deposit (i.e. margin), which is then applied to the balance of the forward contract when the forward is due. Standard Margins are:

  • 2 weeks to 3 months: 4% of the total USD value of the forward
  • 3 months to 6 months: 6% of the total USD value of the forward
  • 6 months to 1 year: 8% of the total USD value of the forward

*Margins vary based on Tempus’ review; some Margins can be waived with two years’ financials.