Alternative lender Just Cashflow is now offering FX services to its customer base of UK SMEs.
The services have been developed for SMEs that are currently supplying to and buying from overseas territories, providing a means to combat the currency exchange uncertainty generated by Brexit.
Features will include the ability to lock in fixed transaction rates for future exchanges, ensuring that businesses are not stung by fluctuating currency rates and enabling them to better control their international payments.
For example, the Pound lost 10 cents / 8% of dollar value ($1.32 to $1.22) from March to September this year, which could have significantly increased the cost of buying in USD for a UK SME if not protected by a ‘forward contract’.
Research from Just Cashflow found that an overwhelming majority (70%) of SME owners felt they were not being well served by the offering from their existing banks.
Furthermore, when the majority of SMEs begin export and import activities they rely on their existing bank to provide them with FX services. Often, this reliance prevents small businesses from receiving the most competitive rates or utilising the most effective payment methods, and with 45% of small businesses trading with some overseas partners, this represents a considerable number of SMEs losing out.
This compounds an existing issue for SMEs, namely that they don’t feel they are being well provided for by the ‘one-size-fits-all’ approach offered by traditional banks. Research from Just Cashflow found that an overwhelming majority (70%) of SME owners felt they were not being well served by the offering from their existing banks.
As a SME-focused alternative finance provider, Just Cashflow is able to offer small businesses FX services that are tailored to their needs, outperforming what is available from traditional banks.
To provide this product Just Cashflow has partnered with FX specialist Ebury, which will ensure exchange capabilities in more than 130 currencies.