Globalisation is one of the defining trends of our times. We live in an era where consumers buy across borders – sometimes even unwittingly – and where marketplaces in particular make it possible for businesses of any size to access new markets in almost any country and on any continent. Multinational is no longer a proxy for ‘big’; multinational businesses now come in all shapes and sizes.
In the UK, the value of international trade – our imports and exports – has risen by the more than 40% over the last 10 years alone and it is estimated that the average UK SME generates £287,000 from dealings overseas. But challenges persist for any UK business buying and selling internationally.
One such challenge is how to deal with incomes and outgoings in multiple currencies. If, for example, you buy from suppliers in China and India and sell to customers across the Eurozone and the US, that requires very careful management. And if that wasn’t hard enough, markets move endlessly. Exchange rates fluctuate on market sentiment and political action – or inaction – and are thus inherently volatile and unpredictable. It is for these reasons that marketplace sellers should explore the tools available to them, such as hedging solutions, from specialist currency providers to manage a risk that clearly cannot be controlled.
In a recent survey conducted by YouGov for WorldFirst, currency volatility emerged as the third biggest concern for UK SMEs, behind a fall in consumer spending but ahead of both government policy and cash flow management. The fall in sterling – which lost nearly 14% against the US dollar and almost 13% against the euro in the 12 months after the Brexit result – has clearly focused minds on the importance of being hedged. Afterall, market moves can hurt even the most well-known businesses, just ask the top brass at either BHS or EasyJet.
But other challenges seem less easy to understand and accept. For example, just why is it so expensive to send money around the world? And how can it be faster to have a physical box shipped from say China to the UK than it is to send money there?
Like you, we believe this is crazy and that’s why we’re on a mission for change.
The World Account is the future of international banking for small businesses and marketplace sellers – and best of all, there’s no bank needed! In short we’re helping businesses overcome the hurdles and costs of buying and selling across borders by delivering international banking functionality on one easy-to-use platform – just without the cost, hassle and upheaval of traditional international business banking.
Specifically, with the World Account you can:
WorldFirst research shows that UK SMEs are trading £78bn every month and World Account signals a step-change in international business banking as we continue to provide solutions for underserved SMEs to do more internationally.
Be amongst the first to get World Account – register your interest now!
Let us develop a tailored solution for your business that will help you reach new international customers and grow your global sales.get in touch