SMEs losing out on international money transfers

Some high street banks are not able to offer organisations the most competitive exchange rates and are consequently imposing high charges on foreign exchange transfers.

This means UK businesses are potentially losing out on £2,000 per transfer* by choosing certain high street banks to handle their foreign exchange requirements.

As Glenn Uniacke, Senior Dealer at Moneycorp comments: “Businesses in the UK are effectively throwing money down the drain by not looking for the best deal when transferring money overseas. By securing the best prices and gaining expert guidance, they could be saving thousands on their international trades.”

The pound has struggled against most major currencies due to concerns over the UK's economic recovery. With this in mind, research highlights the need for financial directors to be extra vigilant when trading internationally and to take advantage of currency peaks and troughs; even the most modest appreciation in sterling’s value can be capitalised on.

British companies will continue to ‘lose’ money unless they are prepared to be more proactive in looking for competitively priced foreign exchange deals and ensuring that they have a foreign exchange trading strategy in place. SMEs are the lifeblood of the British economy and exports are cited as vital to its overall recovery – but if small businesses fail to capitalise on their overseas trades, they will be losing out at a time when additional income really is crucial.

As Glenn Uniacke goes on to explain: “The UK coalition government is counting on a private sector-led economic recovery and SMEs will be critical to this. However, with numbers of SMEs in decline, managing and maximising revenue is key. The outlook is pretty gloomy right now and currency markets will continue to be turbulent – so an effective foreign exchange strategy is more important than ever.”

When looking for a foreign exchange provider SMEs should search for a organisation that offers the following benefits:

• Tailored foreign exchange trading strategies
• A dedicated personal dealer
• Expert market guidance
• Competitive exchange rates
• Access to a dealing team and complete online support
• Fast, convenient online transactions

_{*Research conducted by Moneycorp 1 July 2011. Based on an exchange rate comparison with the leading four retail banks on a transaction value of £100,000.}