Small & medium businesses that import goods need to rely on the services of banks in order to conduct their business. Yet SMB’s, especially ones in need of international wire transfers, are dependent on the highly expensive services of banks or credit card companies. Restaurant and bar owners that import boutique wines or boutique beers are in a higher risk as they rely on popularity trends and can easily be affected by an economic crisis or sudden changes in politics or legislation.
Contrary to SMB’s, bigger businesses and enterprises enjoy more benefits as the foreign exchange processes and payments are unfairly geared in their favor. Large businesses get much better exchange rates as they have the financial power to negotiate for their foreign currency transactions with the banks and credit card companies.
The banks’ rates and margins are usually subject to the scale of a business and the leverage of the business on the bank and therefore banks would not lower their rates for small businesses that do not have the scale or the expertise to negotiate with the bank. Eventually the rates they shall receive from the banks may not be the ones to support their business growth. There is, however, a better alternative to deal with cross currency payments in a way that will benefit SMB’s and help them grow and flourish.
Non-bank transfer services can offer small & medium businesses better rates on their commercial transactions compared to the banks. Thus, the high costs involved with cross border cross currency payments, especially in the field of imported goods in the food & drink industries are extremely reduced. These technological financial companies offer their clients the level of transparency that the banking world is lacking. SMB’s in general and in the boutique wine and beer industries in particular, need to know the exact exchange rate and hence the amount before finalizing a transaction, as they are paying an invoice to their suppliers. These companies can assure their clients that they would not have to deal with unpleasant surprises at the beginning and at the end of their transactions.
Is your business affected from the high fees and costs of international bank transfers on your boutique wine and beer? it is time for a change! Find out more about non-bank transfer services and start saving money for your business.