Lending Certainty to SMEs in a Volatile World

Lender perspectives on effective foreign currency hedging strategies for SMEs

In this paper, senior lending professionals focus on overseas payments in the context of the SME environment, demystifying the issues, without playing down the complexities and risks that volatility brings, and exploring some myths along the way.

The key findings are summarised below:

VOLATILITY – What is ‘normal’ anymore?

VOLUME – The myth that international business sales volume is the determining factor to hedging strategies for SMEs – and the overwhelming case for financial inclusion.

VORACITY – The appetite of UK SMEs to understand and embrace hedging strategies.

VIRUSES – The impact of catastrophic events, such as COVID-19, and the long-term changes requiring UK SMEs to look at their overseas currency risks.

VALUE – The opportunity for lenders to UK SMEs to help their customers in exploring hedging strategies to reducing overseas currency risk.