FIDI has launched its long-awaited netting initiative for Affiliates
The service aims to give users a more efficient payment structure and make substantial savings on international currency exchanges.
It works by handling and netting all invoices exchanged by participating FIDI Affiliates on a specific day every month. This will provide a single net position, that must be paid or received, in the user’s home currency.
Benefits of the system include:
- Minimising the number of payment transactions between FIDI Affiliates, making considerable bank charge savings
- Reducing the number of bank accounts needed, with only currency accounts needed for external receipts or payments
- All currency exchanges related to the invoices of participating FIDI Affiliates will be handled centrally at premium rates
- When a user has a surplus of, or needs, foreign currency, they can request it/offer it to the FIDI Netting Centre to receive the same premium rates
- More straightforward account reconciliation
- Using a web-based system that can receive upload files from an ERP or accounting system
- Payable driven, meaning the payer takes the initiative to upload its payables for settlement – the same way as businesses do when sending payment orders to their bank
FIDI Affiliates can find out more on how netting works, and how to sign up, on this dedicated FIDINET page.
