Don’t review your Business Energy Charges until you read this!
Small Businesses are losing out on Thousands of pounds by not reviewing their International Payments / Currency Transfers costs!
Every year small businesses face the same challenge of keeping costs low and making sure revenue is higher than costs. The task of generating more revenue is usually the trickier one leaving the majority of businesses to focus their efforts on reducing their business costs.
The 10 main business costs reviewed every year are:
- Telephone Line Monthly charges
- Monthly call costs
- Broadband subscription / Internet
- Gas / Electricity
- Stationary / Office equipment
- Photocopier lease / photocopier maintenance
- IT maintenance
- Insurance fees
- Loans
- Rent
The cost that is missing is one that goes by many names: Foreign Exchange, FX, Forex, International Payments, Currency Transfers, Bank Transfer, International Transfer, Currency Payment, FX Payment, Send money abroad, Money Transfer, and the list goes on.
This is the cost that is least reviewed purely because there is no lock in period with most Banks or FX brokers. The 10 above costs usually have a minimum term e.g. 6 months, 1 year or annual renewal date which naturally leads most businesses to review the associated charges/costs. Foreign Exchange on the other hand does not.
Why should you review your Foreign Exchange costs?
Typically most Banks & FX brokers will leave you on their standard pricing (which is usually the highest) unless you have negotiated the FX margin (spread) or actively compare them between each other in order to obtain a competitive quote.
A recent price check we carried out for a client shows the potential saving that could be made just through a simple comparison:
| Provider | Mid-Market Rate at 2.55pm | Client Rate | FX Margin | Payment Charges | Cost of sending $59k |
| Bank | 1.5150 | 1.49 | 1.65% | £19.00 | £ 39,618.85 |
| Mayfair FX | 1.5150 | 1.5105 | 0.3% | 0 | £ 39,062.42 |
| Saving using Mayfair FX | £ 556.43 | ||||
A business making one monthly International Payments could see a saving of over £6,000 based on the above example. This saving would outweigh the savings made on most of the main business costs listed above.
Next Steps:
Use the Mayfair FX price check for a FREE review -> https://www.mayfairfx.com/price-check/
Speak to your Bank or FX broker to find out how much you are being charged
Shop around & compare to find the best deal