Key Takeaways:
- 70% of SME owners feel discriminated against by banks in favor of larger companies, according to HedgeFlows research.
- Limited support for international payments and lack of financial expertise hinder SMEs’ plans for expansion.
- SMEs call for a level playing field and access to services enjoyed by larger enterprises.
In a groundbreaking survey conducted by independent polling agency Censuswide, it has been revealed that a staggering 70% of small and medium-sized enterprise (SME) owners believe that banks actively discriminate against them in favor of larger companies. The findings, disclosed by HedgeFlows, a leading fintech platform, highlight the challenges faced by SMEs in accessing finance and support necessary for their growth and international expansion.
Lack of Support Hinders International Expansion
One of the most concerning revelations from the survey is that a substantial 72% of SME owners express dissatisfaction with their bank’s limited support around international payments. As the global marketplace continues to expand, SMEs increasingly recognize the importance of venturing into international markets. However, the lack of support and guidance from banks leaves them struggling to bridge the gap and gain the confidence required for such expansion.
Furthermore, a staggering 73% of SME owners reveal that they encounter difficulties in securing a meeting with their bank or financial manager, leading to delays in implementing crucial business plans. The lack of attention from banks not only hampers SMEs’ growth potential but also undermines their aspirations to succeed in an increasingly competitive landscape.
High Trading Costs and Limited Expertise
Another obstacle identified by the survey is the exorbitant trading costs faced by SMEs. According to 72% of respondents, bank transfer fees abroad are prohibitively high, leaving small businesses at a disadvantage compared to their larger counterparts. SMEs argue that these fees should be reduced to foster a more equitable business environment that encourages growth and fosters economic development.
Moreover, despite recognizing the benefits of international expansion, 65% of SMEs lack the financial expertise required to open an office overseas. This knowledge gap presents a significant hurdle for small businesses that aim to tap into global markets. Without adequate support and guidance, SMEs find themselves limited in their capacity to navigate international transactions, currency conversions, and cashflows effectively.
Demanding a Level Playing Field for All Businesses
Neh Thaker, co-founder of HedgeFlows, underscores the vital role played by SMEs in the UK economy and emphasizes the need to address the challenges they face. Thaker argues that SMEs should have access to the same level of service enjoyed by larger enterprises, enabling them to manage overseas transactions, currency conversions, and cashflows seamlessly. To achieve this, Thaker calls for a level playing field that empowers SMEs with the tools and resources necessary for international expansion.
Empowering SMEs with HedgeFlows
HedgeFlows, an international payments and finance platform for SMEs, aims to fill the void left by traditional banks. The platform provides seamless management of foreign payments, cashflows, and invoices, offering ambitious SMEs the services often denied by larger financial institutions. Licensed by the Financial Conduct Authority (FCA), HedgeFlows aims to bridge the gap between SMEs and the resources required for their growth and international success.
As the survey results demonstrate, it is high time that SMEs receive the support they deserve to flourish and contribute to the UK economy. With fair access to financial services, SMEs can unlock their full potential, drive job creation, and navigate the challenges of an uncertain economic landscape.
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