It’s a fact. Nine out of ten startup businesses will fail. Anyone that’s taken the leap and started a business will have this hard and bleak truth firmly embossed in their mind. Those who have thrown caution to the wind and pressed ahead regardless should be applauded and supported.
Any fledgling business owner will attest to the saying “look after the pennies, and the pounds will look after themselves”. In today’s global business economy, you should expand that to “look after the cents, and the Euros will look after themselves” – because ultimately, running a business is all about protecting your bottom-line.
Increased globalisation and decreased barriers to entry have opened a veritable melting pot of competitive business opportunities overseas – too good for any business owner to pass up.
Don’t bank on the banks
Whether you use overseas producers or export your goods abroad, international payments will be an integral part of your business. All too often startups turn to large, established institutions such as banks in the belief they are more trustworthy and will have your best interests at heart. Sadly, nothing could be further from the truth.
Regardless of where you live in the world and what types of bank account you have; most high street banks offer poor exchange rates and levy a variety of hidden charges. Very few of their customers bother to check rates and how much they’re paying, allowing the banks to benefit from customer apathy.
Look out for transfer charges and receiving fees from the overseas bank as its easy to get stung. Many banks claim to be commission free, then stack the exchange rate and make finding this information difficult to enable a fair comparison. Fortunately, there is a better way!
Bank on brokers
Gone are the days when banks ruled currency transactions, there is a better way to move your business’s money overseas. Competition for all types of business financial services has grown in recent years, and when it comes to the commercial foreign exchange market and the services available to SMEs, UK companies have access to some of the best specialist currency brokers in the world.
Specialist currency brokers can buy at the same wholesale exchange rates as banks, but operate on much lower overheads, enabling you to benefit from better rates and reduced fees. Currency brokers use special tools help you avoid getting caught out by exchange rate fluctuations, by enabling you to lock into favourable rates in advance.
UK banks are not famed for their high levels of customer service, quite the opposite in fact. A specialist currency broker will take the time to learn about your business, build a relationship, and provide tailored solutions as your business grows from its humble beginnings.
So, when your startup begins to exchange money overseas, be sure to take advantage of the financial savings afforded by long-established currency brokers – your bottom-line will thank you for it.
Learn from our currency experts, for free!
Every new business is different, so choosing a partner that can give you free, unbiased advice in those early years can be incredibly rewarding. That’s why at Currency UK, we offer all SMEs the opportunity to learn from a business finance expert at our one-to-one Currency Clinics.
Running a business is tough. Let us at least take the headache out of moving money between countries. To book an appointment for a free consultation at one of our Currency Clinics, click here to choose a slot that fits around your busy schedule.
Posted in Business Resources on Jan 12 2018