If your SME business is involved in buying materials or services from overseas or exports products to other parts of the world, it has never been easier to trade on the global stage. The rise of digital communications and industries has led to a huge increase in global commerce for smaller businesses in recent years. However, when it comes to international payments, you may find your business is being held back by expensive foreign exchange services offered by banks who are more geared towards serving their larger corporate customers.
Small and medium sized businesses are unknowingly paying over the odds for their foreign exchange (FX) services and are unware that they could be paying hidden fees of around 2.5% to 5% every time they instruct their bank to convert currency and send a payment. This could equate to a charge of up to £2,500 for converting £50,000 of currency.
Rather than openly displaying these fees to their customers, banks hide these charges within uncompetitive exchange rates. With around 85% of small firms using their bank to do FX transactions, the resultant fees are estimated to cost them some £4bn per year in additional and unnecessary charges.
Large multinational companies, due to their size and closely managed banking relationships, obtain much more favourable currency exchange rates than SMEs. But is it fair that they should be subsidised by smaller customers?
“Expensive foreign exchange charges are an unnecessary burden on smaller companies, especially those operating on tight margins, but the good news is that they now have more options to deal with this side of their business” says Jamie Holmes of CurrencyWave.
CurrencyWave is a digital business that leverages technology to reduce the complexity and cost of international payments for small and medium sized businesses as well as for individuals.
“It is our mission to level the playing field in foreign exchange and offer access to market leading exchange rates whilst at the same time providing a superior customer experience throughout the whole payment process.”
CurrencyWave can be contacted on 0113 451 0180 or by email at firstname.lastname@example.org.
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