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High banking charges are a bigger blocker to international expansion than Brexit red tape, according to small business owners. A study, of 3,000 SMB leaders, found they struggle more with banking fees (26 percent), than supply chain issues (22 percent) or tariffs (19 percent).<\/p>\n<\/div>\n
Last year, UK SMBs lost \u00a32.8bn to these hidden fees \u2013 and, in total, consumers and SMBs lost a colossal \u00a34.4bn. Meanwhile, the complexity of international payments is preventing 69 percent of SMBs from expanding further.<\/p>\n
Time-strapped business owners are unable to easily compare the market due to a \u201ccorporate opt out\u201d, which means banks don\u2019t have to apply existing payments transparency regulation to businesses \u2013 making it easy for banks to hide their fees in the exchange rate, and rip off British owners.<\/p>\n
International account provider, Wise, is calling on the government to End the Opt Out through a petition, and for regulation to then be further tightened to ban hidden fees for businesses and consumers.<\/p>\n
Steph McGovern, TV presenter, host of The Rest is Money podcast, and small business owner of \u201cGootopia\u201d, who is backing the campaign, said: \u201cAs a small business owner myself, I know that operating in the current climate is tough.<\/p>\n
\u201cThe fact that businesses are being ripped off when it comes to international payments is not only bad for them \u2013 but it\u2019s bad for consumers and the economy. That money could cut prices, create jobs, be kept safe for rainy days, or deliver investment.<\/p>\n
\u201cOur business is operating across various cities in the UK, so we know that this is a problem for businesses up and down the country.<\/p>\n
\u201cThere are so many things that can be done to aid SMB growth. Ending the opt out, and improving legislation to ban hidden fees, is a simple, cost-free way of helping the country\u2019s small businesses. Sign the petition now.\u201d<\/p>\n<\/div>\n
Further research of 1,500 SMBs found that, if the cost of international banking services were to be reduced, more than a third (34 percent) would enter new markets, including the EU (58 percent), North America (41 percent), and the Middle East (31 percent).<\/p>\n
Just over a quarter (27 percent) would hire more staff, and 21 percent would reduce the price of their goods and services.<\/p>\n
Two-thirds (66 percent) of SMBs surveyed agreed that the opt out should be removed, and the majority (82 percent) said that regulation should encourage banks to be transparent about international payment costs.<\/p>\n
Magali Van Bulck, head of EMEA policy at Wise, said: \u201cFor too long, financial providers have been charging grossly unfair fees and inflated exchange rates.<\/p>\n
\u201cThis needs to end now \u2013 and the Government can do so without costing the taxpayer a penny. Everyone loses out to hidden fees, but the problem is most acute for SMBs.<\/p>\n
\u201cExisting legislation is weak and patchy, but it doesn\u2019t even apply to SMBs due to a corporate opt-out. This drives up costs, dims competition, and costs SMBs money, growth, and opportunity.<\/p>\n
\u201cIt\u2019s time to end the opt out, tighten legislation \u2013 and put a stop to hidden fees once and for all.\u201d<\/p>\n<\/div>\n[ad_2]\n","protected":false},"excerpt":{"rendered":"
[ad_1] High banking charges are a bigger blocker to international expansion than Brexit red tape, according to small business owners. A study, of 3,000 SMB leaders, found they struggle more with banking fees (26 percent), than supply chain issues (22 percent) or tariffs (19 percent). Last year, UK SMBs lost \u00a32.8bn to these hidden fees …<\/p>\n","protected":false},"author":1,"featured_media":27980,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/27979"}],"collection":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/comments?post=27979"}],"version-history":[{"count":0,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/27979\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media\/27980"}],"wp:attachment":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media?parent=27979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/categories?post=27979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/tags?post=27979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}