# US and Canadian customers currency fluctuations



## Paddylast (23 Dec 2008)

My cousin has a small business and has some US and Canadian buyers. Both of these have requested adjustments in the way they pay their invoices to allow for the increase in the Euro against both their currencies. One, the Canadian has requested that he can calculate his own currency loss against the euro since e.g. 1 June 08 and have the equivalent proportional reductions in his euro downpayment. The US guy requests that he pays downpayments in instalments with the full balance due by 31 Oct 09.

While my cousin wants to keep doing business with these guys he is confused as to whether he should agree to either requests or indeed which would be the lesser of two evils so to speak. 
No good on this currency stuff myself. Anyone any advice that can be passed on please?


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## roro123 (23 Dec 2008)

Although if they are business clients who purchase goods regularly in other currencies perhaps they should have hedged. Perhaps he could offer an meet them half way discount on the euro price and move away from trying to always calculate currencies each time.
Keep the customers happy once he still makes profit.


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## Paddylast (24 Dec 2008)

Thanks roro123, I think he believes this could be the tip of the iceberg in terms of other clients jumping on the band wagon. He can ill affort to meet their "demands" (has cash flow problems himself anyway)but I suppose if he wants to keep them as clients he may have little option. Is this normal for allowances to be made for currency fluctuations. Surely it is up to these businesses to ensure they do as you say and hedge their currency ahead of time? Isn't fluctuations all part and parcel of doing business. Just wonder if the shoe was on the other foot so to speak, would allowances be made.


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