As the cost of doing business increases and bottom lines are being squeezed, it’s become more crucial than ever to find ways to save on the basics.
You may already know increases in energy have had a major impact on critical international freight costs. However, not all SMEs are aware that increases in energy prices almost always come with increased foreign currency costs. Just like with your electricity, you can’t change the price of foreign currency, but you can change the cost.
In this free eBook, we show you how AI technology can use the simple data from your foreign currency bills to deliver immediate and tangible savings to your business.
Before we get into the wild ride of the pandemic and the many socio-political issues that have wreaked havoc on businesses, let’s first address the fact that SMEs have always had reduced access to expert knowledge and technology when it comes to paying overseas invoices and foreign currency.
Often seen as a non-negotiable and necessary element to business, the international invoice is often simply accepted, left in the virtual admin tray, and paid when it’s due. No qualms or further thought, let alone strategy, on it.
Adding in now the pandemic and its aftermath, alongside Brexit and the Ukraine crisis, the negative impacts and losses coming from foreign invoices has skyrocketed as result of this lack of planning.
So, what is foreign invoice loss? Foreign invoice losses are the extra costs associated with unfavourable exchange rate moves.
In 2021, SMEs lost an average $28,500 on foreign invoices. In 2022, this loss is looking at over $50,000.
It is the SMEs who are hardest hit by this despite making up the majority of the economy because of the sectors in which they work, and how time and resource poor they typically are.
Our eBook looks into this and how to make the seemingly innocent foreign invoice unlock cash savings for SMEs, in a smart, data-driven way.
The foreign invoice continually fluctuates in cost as exchange rates change. If the foreign exchange rate moves up, the local cost increases and vice versa - this is the life of a foreign invoice.
This is something that smaller businesses may not necessarily be aware of, and if they are, managing it, like watching FX rates and trying to time the market, is often an unproductive use of time - and risky.
While international business has many upsides, the effects of FX can have considerable effects on the trade itself. Things like profit margin erosion, unavoidable price increases to customers, and resulting less sales often have roots in FX changes as costs fluctuate. Sadly, this is an overlooked cause because the figures are considered fixed and uncontrollable.
As most know, trying to control the market is impossible (much like the weather) but that doesn’t mean planning is pointless (bringing an umbrella is helpful). So, we are here to help SMEs find the right tools to break down and extract the relevant data, so that forecasting is not only simple but easily implemented to see change - like staying dry in a downpour.
While there are some barriers and challenges for SMEs to introduce a better currency plan, our eBook and smart platform address these and help you to get there. Competition is getting tougher as is the environment so where savings can be made, it’s worth seeing how. Particularly if they can be felt quickly.
Now is the time to prioritise the change in process and approach as inflation and interest rates continue to rise globally, e-commerce and cross-border trade is peaking and the accessibility to easy, extractable data has improved thanks to mandatory e-invoicing. The right conditions are in place to take advantage and get ahead.
Our eBook highlights the importance of how a better currency plan not only helps your bottom line and profit margin figures, but gives your customers a better experience and journey, increases our market share and provides a much-needed degree of consistency and assurance in these turbulent times.
Find out more in our eBook today.