Many UK businesses source products and services from overseas which results in invoices denominated in currencies other than GBP Sterling. In instances such as this, payment of the invoice involves the buying of the currency in which the invoice is issued and, unless thorough in researching a competitive provider for currency exchange services, many UK businesses fall back on the tools offered by their banks.
It is perfectly true to say that different banking institutions charge different fees for international payments and currency exchange services. Generally speaking, a customer has zero discretion over the rate applied to their currency exchange. This presents Prime Cap with an opportunity to identify a margin of improvement and consistently undercut our peers in the banking space.
Our client imports fabrics for furniture. Their average transactions amount is between £15,000 and £30,000 on a bi-monthly basis. We charge our client 0.5% which we incorporate into the rate of exchange we present to them through a white-labelled transaction platform backed by our FCA regulated market-markets.
Confident that our fee will not change, our client is happy to push their currency exchange activities through us because of the additional oversight and insight we offer, as well as the half a percent saving we offer compare with their bank.
Whilst 0.5% may not seem like a sizeable saving, our client is extremely happy with the £2000 saved each year.