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In a recent article from The Times, SMEs have shown to be suffering from substantial losses due to a variety of hidden bank charges when dealing with foreign exchange. The research, undertaken by Capital Economics found that the mark-ups made on international payments charged to small and medium-sized businesses add up to £4.1 billion, equivalent to £755 for every small company.
Furthermore, the research found that 1 in 5 companies which transfer money overseas at least every fortnight said that they had no idea how their bank charged them for these transfers.
Verity Coleman, of Rascal & Roses, an interior design and online homeware shop, said:
“Banks add extra complexity and expense to small business owners trying to capitalise on [international] opportunities. The terrible exchange rates offered by the banks coupled with delays in payments meant I didn’t always receive the full retail price for the item, especially once I was charged by my own bank for receiving foreign currency transactions. That’s a pretty awkward conversation to have to have with a customer. I’m amazed the banks haven’t been held to account.”
Vedanta Hedging assists SMEs to provide transparency on currency hedging. We do this by helping to negotiate the hidden margins with banks and brokers when buying / selling currency.
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