British SMEs could be wasting up to £280 million a year in bank fees
Ten minutes homework on their payments provider could save an SME over £2000 per year
Small and medium sized businesses could be wasting millions of pounds every year when making international payments, according to Travelex Global Business Payments, the cross-border payments specialist.
Travelex has estimated that smaller businesses that trade internationally are wasting up to £280 million per year on transaction fees by using their bank instead of a payment specialist, or £2280 per business.
In a climate where cost-savings and efficiencies are more important than ever, Travelex’s Payment Health Check shows that more than 80% of the businesses surveyed currently use their bank to make international payments, potentially costing them between £25 and £40 each time they make a payment. Payment specialists like Travelex charge as little as £4 to send an international payment.
And interestingly, whilst the majority of businesses expressed concern about the impact currency volatility had on their business, only 35% utilised risk management tools like forward contracts, suggesting a lack of awareness of the different currency tools available.
“When it comes to currency, our research shows that small and medium sized businesses seem to be largely unaware of the different options available to them,” comments David Sear, Global Managing Director at Travelex Global Business Payments. “Even something as simple as changing their international payments provider could save them over £2000 per year. They should also consider if they could benefit from currency risk management tools like forward contracts or standing orders.”
“Payments Specialists like Travelex Global Business Payments are at an advantage because all we do is payments, which means we can offer a better and more cost effective service than the banks.”