High foreign exchange fees and slow cross-border payments are making it harder for UK firms to grow internationally, with new research from Currenxie suggesting the issue is now straining supplier relationships as well as margins.
The global financial platform said 52% of UK businesses believe FX fees and payment delays are actively damaging ties with overseas suppliers, while 57% say foreign exchange costs are simply too high and are holding back expansion. The findings come a...
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t a time when businesses are leaning more heavily on international trade: 94% now work with suppliers or customers abroad, underlining how central cross-border commerce has become to resilience and growth.
Yet the same research suggests that expansion is paying off for those able to manage the costs. Half of firms said they had broadened their international supplier base over the past year, and 91% of those reported higher profits. Even so, nearly a third of businesses said they had been forced to pass rising costs on to customers, as geopolitical disruption adds further pressure to already stretched supply chains.
That concern is echoed in wider industry commentary. Bibby Financial Services’ 2026 Trading Places Report found that 40% of SMEs say exchange rate volatility directly hits profitability, while more than half have altered their FX strategies in response to market conditions. Separately, exchange-rate specialists have warned that currency swings can affect not only importers and exporters but also companies paying for freight, energy and software in US dollars, making FX exposure a broader operational issue than many firms assume.
Currenxie’s Europe chief executive, Sam Coyne, said access to new markets was vital for diversification and growth, but warned that SMEs with thin margins face difficult choices when FX charges rise. He also pointed to slow processing through mainstream banks as a further drain on cash flow, adding that businesses need more reliable and cost-effective payment options if they are to stay competitive.
The company argues that specialised fintech providers can reduce fees and simplify international transfers, helping firms expand without eroding profitability. For many SMEs, the message is increasingly clear: the ability to trade globally is no longer the problem; the cost of doing so is.
Source: Noah Wire Services
