Forward Drawdown

Forward Drawdown: Greater Control Over Your FX Transactions

A Forward Drawdown is an exclusive tool that allows Monex USA clients to access and utilize funds from an existing forward contract before its maturity date. This innovative feature provides unparalleled flexibility for businesses, enabling them to manage cash flow effectively while capitalizing on pre-booked foreign exchange rates. Whether you need to make early payments or allocate funds dynamically, Forward Drawdowns offer the control and convenience modern businesses demand.

Why Choose Forward Drawdowns?

Forward Drawdowns offer essential benefits for businesses, including greater cash flow flexibility, enhanced financial control, and strategic usage of pre-determined FX rates. With Monex USA’s simple and intuitive platform, managing your cross-border transactions has never been easier.

Key Features of Monex USA Forward Drawdowns

• Early Contract Access: Utilize your forward contract funds when you need them most.
• Streamlined Process: Navigate a user-friendly interface for quick and efficient drawdowns.
• Flexible Funding Options: Choose how you fund drawdowns, including multiple methods.
• Enhanced Cash Flow Control: Align foreign exchange transactions with your business’s needs.

Forward Drawdown Process

1. Log into Monex Online

• Access your account and click on Forwards from the navigation bar on the left-hand side of the screen.

2. Select the Forward Contract

• On the Forwards screen, locate the Drawdown button next to the Place Forward button.
• Forwards eligible for drawdown will have a non-greyed-out circle next to the Deal #. Simply click the circle to select the forward, and then hit the Drawdown button to begin. (Note: At this time, only one forward can be drawn down per transaction).

3. Initiate the Drawdown

• The first step of the drawdown process resembles setting up a payment.
  • Select Pay to a Beneficiary and choose the beneficiary from the dropdown menu. Alternatively, funds can be directed to a holding account.
  • Optionally, you can add a Payment Reference below the Value Date field.
• At this stage, you can choose to Add this payment link to send varying drawdown amounts to multiple beneficiaries or to multiple same-currency holding accounts, if the client has more than one. Alternatively, you can select Complete Drawdown to proceed with the transaction.

4. Funding Step

• The second and final step involves funding the drawdown.
  • The initial deposit tied to the forward will be automatically subtracted, leaving the remaining amount to the fund.
  • Use the available Operating Account to fund the balance or click on +SPLIT FUNDING METHOD to utilize multiple funding methods.
  • Continue until the Amount remaining to be funded shows USD 0.00, and then click Complete Your Payment to finalize the transaction.

5. Confirmation

• Once completed, a confirmation page for the drawdown will be displayed for your records.

Take the Next Step with Monex USA

Contact us today or create an account to learn more and experience a smarter way to process your payments!

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