Small businesses overpay thousands in export fees

Published by The Fresh Business Thinking

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Small and Medium-sized Enterprises (SMEs) in the UK have been paying over the odds for international exports due to unnecessary fees for cross-border transactions, according to new research.

The research by Covercy revealed that traditional banks have control over 95% of the business payments market and SMEs can overpay £55 for each transaction of £1,000.

The international payments service company also found that for each transaction of £10,000, SMEs pay over £106 in needless fees and for transactions of £30,000, businesses pay more than £220 in unnecessary charges.

With over two-thirds of SME exporters making at least 20 transactions a month, paying extra for these can soon add up, as one company making 20 transactions of £30,000 could overpay an average of £4,400 monthly or £52,800 a year…

Doron Cohen, CEO, Covercy, said:“Brexit has brought huge uncertainty to UK SMEs, with 96% of exporters selling to the European Union. Now with the threat of being locked out of the single market, these exporters potentially face new, costly taxes which could make them much less competitive than their EU rivals.

“Meanwhile, SME importers have already suffered a critical 18% rise in their costs in less than a year due to the fluctuation in sterling’s value”…