"Today’s business environment is one of unprecedented upheaval, and small businesses often feel the brunt of these fluctuations. "
Just Cashflow is now offering FX services to its UK SME customers.
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.
The lender's research found that 45% of small businesses trade with some overseas partners.
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.
To provide this product, Just Cashflow has partnered with FX specialist Ebury, which will ensure exchange capabilities in more than 130 currencies.
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’.
The majority of SMEs rely on their existing bank to provide them with FX services, which Just Cashflow says often prevents them from receiving the most competitive rates or utilising the most effective payment methods.
John Davies, executive chairman at JLG Group, said: “Today’s business environment is one of unprecedented upheaval, and small businesses often feel the brunt of these fluctuations.
“From conversations with our customers it is clear they are concerned about the impact of this uncertainty on invoices and receipts from overseas. Time-starved business owners need to ensure their all-important cash-flow and can’t afford to risk currency fluctuations working against them.
“At Just Cashflow we believe that lenders have a responsibility to provide SMEs with more than just money - which is why we have decided to provide competitive and efficient FX payments for our customers going forward.”