Small Firms Potentially Losing up to £110m Due to Unstable Currencies
The UK’s small and medium businesses are “held back” from exporting success due to money lost while making overseas transactions
The UK’s small and medium-sized companies are potentially losing out on up to £110m every year while making overseas transactions due to unstable currency markets, a report by moneycorp has revealed.
According to the research, small overseas traders could be unknowingly falling victim to currency market fluctuations and, while the number of UK small businesses exporting has increased (the latest figure totalling 223,000), this could be detrimental to a small firm’s exporting success.
The findings come just one day after a report by the Confederation of British Industry (CBI) announced that small business export rates have hit their lowest rate since the recession.
Andy Reid, a managing director at moneycorp, commented:
“British businesses have a huge amount to offer to the international marketplace yet one of the main issues they often overlook when going global is foreign exchange risk.
“Currencies around the world are affected by factors that are completely out of their control – from interest rates, economic growth to the politics of a country. Even small fluctuations can have a huge impact on overseas profitability.”