Business FX for SMEs: Payments, Accounts and Currency Risk
Start here to compare business FX options and plan international payments, foreign-currency receipts, multi-currency accounts and currency risk.
Start here to compare business FX options and plan international payments, foreign-currency receipts, multi-currency accounts and currency risk.
Managing business FX can involve much more than sending one international payment. An SME may need to pay overseas suppliers, receive customer revenue, hold several currencies, protect a future budget or coordinate recurring payments.
This hub brings together BER's practical guidance for small and medium-sized businesses. Start with the task your business needs to complete, then compare the exchange rate, fees, timing, eligibility and operational features that matter for that task.
The lowest advertised fee is not always the lowest total cost. Before opening an account or confirming a payment, check the live quote, service availability, settlement time and terms for your business and destination.
Importers need to know the full cost of an invoice in their home currency. Exchange-rate movements between ordering, shipping and payment can change the landed cost and reduce the expected margin.
Compare the amount the supplier will receive, not just the transfer fee. Also check whether the payment may pass through intermediary banks, whether the supplier expects to receive a specific amount and whether paying in the supplier's local currency changes the quoted price.
Read our guide to managing payments for overseas suppliers.
Exporters, consultants, agencies and other service businesses may lose part of their revenue when a foreign-currency invoice is converted. A payment can also be reduced by sending, intermediary or receiving-bank charges.
Consider which currency to quote, who is responsible for payment charges and how long the customer has to pay. If your business regularly receives the same currencies, a suitable multi-currency account may let it receive and hold supported currencies until they are needed or converted. Account details, holding features and safeguards vary by provider and market.
Freelancers and small service businesses can start with our guide to receiving payments from clients abroad.
Online sellers may receive marketplace proceeds in one currency while paying suppliers, freight, advertising and tax liabilities in others. Repeated conversions can make the real cost difficult to see.
Map each incoming and outgoing currency before choosing an account. Check whether the service can receive marketplace payouts, pay suppliers, hold the required currencies and produce records that work with your bookkeeping process.
See why online sellers use FX specialists for more detail.
A business making frequent payments should assess more than the exchange rate. Useful operational features can include batch payments, approval controls, beneficiary management, payment tracking and exports or integrations for accounting. Availability and pricing vary, so compare the specific workflow your finance team needs.
An international payment can include several separate costs. Ask each provider for a quote based on the same currencies, amount, payment method and recipient details.
| Cost or condition | What to check |
|---|---|
| Exchange-rate margin | Compare the quoted customer rate with a current reference rate and check the resulting recipient amount. |
| Transfer fee | Check fixed, percentage-based and payment-method fees before confirming. |
| Intermediary or recipient charges | Ask whether other banks may deduct charges and whether the recipient must receive an exact amount. |
| Funding cost | Card funding and urgent payment methods may cost more than a bank transfer. |
| Timing and certainty | Review cut-off times, estimated delivery and what happens if a compliance check delays the payment. |
A provider advertising no transfer fee can still earn revenue through the exchange rate. Likewise, a competitive rate does not compensate for an unsuitable payment route, unsupported destination or missed invoice deadline. Compare the complete outcome.
Start with the payment your business actually needs to make rather than choosing a provider from a general headline rate.
For a closer look at two business-focused services, see our Airwallex vs OFX comparison. Product availability differs by country, so confirm the current terms directly before applying.
Currency risk begins when a business commits to receive or pay a foreign currency at a later date. The aim is not to predict the market perfectly. It is to understand how much the business can afford to lose if the rate moves and to make future cash flows easier to plan.
List confirmed and likely foreign-currency receipts and payments, their currencies, amounts and expected dates. Separate contracted invoices from sales forecasts or purchase estimates.
Test how a reasonable adverse currency move would affect the home-currency cost, gross margin and available cash. This helps show which exposures are material and which can be accepted as normal business variation.
Our guide to currency fluctuations and profit margins includes a simple explanation of this relationship.
Depending on the business and available products, an approach may include:
Forward contracts and other hedging products can involve deposits, binding obligations, cancellation costs and eligibility requirements. They can protect a budget from an adverse move but may also prevent the business from benefiting from a favourable one. Review the provider's terms and obtain professional advice when appropriate.
Set out who can approve conversions, what evidence is required and when exposures will be reviewed. A short, repeatable policy is generally more useful than making each payment based on a fresh currency forecast.
See our business FX risk case studies for examples of different approaches.
No provider is cheapest for every currency, amount and payment method. Banks and specialists can apply different exchange rates and fees. Compare live quotes for the same transaction and focus on the amount the recipient is expected to receive.
The market or mid-market rate is a reference point between wholesale buy and sell prices. A business customer normally receives a different rate that includes the provider's exchange-rate margin. Separate fees may also apply.
It may be useful when a business regularly receives and spends the same foreign currencies, wants to avoid unnecessary conversions or needs supported local receiving details. Compare account fees, conversion costs, supported currencies, withdrawal rules, safeguards and bookkeeping requirements. Read our multi-currency account comparison.
A forward contract may help an eligible business fix the home-currency cost of a known future payment or the value of a foreign-currency receipt. It provides certainty rather than a guaranteed saving and is a binding financial product. Terms and availability vary.
Start when the business agrees the foreign-currency price, not only when the invoice becomes due. Purchase orders, sales contracts, deposits and payment terms can create exposure weeks or months before settlement.
Requirements vary by provider, country, business structure and transaction. A provider may request information about the company, owners or controllers, source of funds, reason for payment and supporting invoices or contracts. Build time for verification into the payment schedule.
Enter the amount and currencies for the business payment you want to compare. The calculator is set to show business transfer options.
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Treat the results as a starting point: obtain a current business quote and check the provider's terms, eligibility, timing and recipient amount before confirming. You can also open BER's full business money-transfer comparison.
This page provides general information and does not take account of your business's financial situation. Foreign exchange and hedging products involve risk. Consider professional financial, accounting, legal or tax advice where appropriate.