Banking An alternative to over-priced bank transfers for SMEs
New on-line service for foreign payments provided by Forexfix offers favorable exchange rates to SMEs as well as security against exchange-rate fluctuations.
Berlin-based Forexfix in Germany says it offers SMEs hedging of small amounts of up to 12 months ahead at a rate fixed on day one (known as forward rate). The new online service provided by the B2B Fintech company is said to be attractive for SMEs that wish to avoid costly international transfers outside the euro zone and thus save on expensive bank charges currently practised. The company relies on cost-effective processing via an online platform.
Particularly SMEs face the problem of getting a fair rate when paying imports from abroad because they have to pay the expensive additional banking fees. Many companies therefore choose the usual route via their house bank and remain dependent on the conditions made by their bank. One cost trap is that even for supposedly favourable exchange rates, banks usually apply expensive processing fees for both the sender and the recipient.
Forexfix says it solves this problem by offering companies fast processing via the platform, which it has developed for this purpose: Customers can register online and, after identification, send and receive payments conveniently in over 30 currencies and more than 100 countries. Forexfix avoids the usually expensive fees by having a partnership with the internationally active company Currencycloud, which secures the transactions.
"In international payment transactions you can incur losses of 10-20% in just a few days – look at the Turkish lira or the Swiss franc," says Forefix founder and managing director Robert Kröber. "With our innovative service, we really want to offer every SME a fast and cost-effective alternative. Until now, this was only possible for large customers.”
Hedging no longer for big players only
Another decisive added value includes the option of receiving a fixed price today for payments at a later date, the so-called "hedging" of future price changes. In the past, this was only possible with large volumes (millions) and usually only for companies that are longtime customers of the bank.
Forexfix is already successfully positioned internationally with customers in Germany, Austria, Switzerland, France and Thailand – from various industries such as mechanical engineering, international trade, tourism and many more.