How UK businesses can save money on global spending

For many UK businesses, paying abroad is now part of everyday life. Suppliers may be based in Europe or Asia, software might be billed in dollars and advertising platforms often charge in local currencies. International transactions have become the norm, yet the costs attached to them are often overlooked.

One of the biggest hidden costs is the foreign exchange fee. Banks typically charge between 2% and 3% on non-sterling transactions.  It all adds up to a significant hit on profit margins, especially if you’re a company paying thousands each month on overseas goods or services.

What are forex fees?

Forex fees are charges that often appear without much warning. A business might agree a deal with an international supplier, only to discover later that the bank has added a percentage on top once the payment clears. 

That makes it harder to predict the total landed cost (the full price of getting goods to your warehouse, including not just the supplier’s invoice but also transport, duties and bank charges). When unexpected fees appear, your cash flow can take a hit at the very moment you’re trying to scale.

The impact isn’t limited to large invoices either. Regular, smaller payments, such as SaaS subscriptions or recurring ad spend, can quietly erode profitability over time. A £500 monthly subscription priced in US dollars, for example, can potentially carry an extra £15 in fees. Multiply that across several services, and the annual cost is far higher than expected.

The broader trend in business finance

The rise of challenger banks and fintechs has helped shine a light on the issue, with many building their early appeal by offering cards that waived forex fees. The effect has been to reset expectations: businesses now see paying extra for international transactions as outdated.

Traditional banks, however, have been slow to follow suit. While some have introduced partial fee waivers, such as on purchases but not cash withdrawals, the offers often come with small print that makes them less appealing. For companies that depend on global suppliers and digital tools, the lack of transparency is frustrating to say the least.

Solutions businesses use today

Different approaches have developed to help deal with international spending, such as:

• Multi-currency accounts: Popular for larger transactions, particularly when receiving as well as sending money abroad, multi-curency accounts offer good visibility but don’t always suit frequent, lower-value payments.

• Debit cards from challenger banks: Often come without forex fees, debit cards from challenger banks can be attractive for everyday use. The drawback is that they usually lack the credit facilities and protections businesses need.

• Traditional credit cards: A credit card can provide the flexibility and purchase protection that SMEs value, but they still tend to apply non-sterling charges on every transaction.

The result sees many businesses finding themselves juggling several products with the sole aim of avoiding unnecessary costs, which can complicate financial management.

What Funding Circle does differently 

At Funding Circle, we’ve recognised that UK businesses deserve better than paying hidden fees on every international payment. That’s why we’ve waived all foreign transaction charges across our two business cards.

• FlexiPay from Funding Circle gives you the ability to spread any global purchase into interest-free instalments, protecting your cash flow while keeping landed costs clear from the outset. Think of it as cash flow freedom with a simple flat fee per transaction.

• Funding Circle’s Cashback Business credit card allows you to turn spending into savings with market-leading cashback on all purchases, now including international ones, without deductions for forex. You can stop losing money to fees and start earning it back instead.

The aim is simple and gives businesses the flexibility and transparency needed to grow with confidence across borders without losing money to outdated charges.

How much can be saved on avoiding forex fees?

Even small differences in charges matter. A company spending £20,000 a year abroad could easily be losing £600 in fees if their provider applies a 3% charge. For a growth-focused business, that money could be redirected into other parts of the business, be it marketing or product development.

When forex fees are removed, businesses know that the price they agreed is the price they’ll pay. Having clarity makes budgeting more straightforward and reduces the risk of cash flow shocks. Predictability is also valuable.

Keeping more of what you earn

As UK businesses continue to operate internationally, the financial products they use should make global trade easier, not harder. Hidden costs like forex fees only act as a barrier. By choosing solutions that eliminate them, businesses can hold on to more of their earnings and use that money to fuel growth.

Explore how FlexiPay and the Cashback Credit Card can help you spend with confidence at home and abroad, and keep more of your money working for your business.

Learn more about FlexiPay

Learn more about the Cashback business credit card

13/10/2025: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.