R E G I O N A L R E V I E W
R E G I O N A L R E V I E W
Vivek Savani, UK Country Manager, iBanFirst
Providing financial confidence for SMEs Protectionist policies, like what Liberation Day formalised, serve to limit market access which stifles growth opportunities. Higher costs for UK imports can reduce demand for goods, impacting the competitiveness of our exports globally.
When the vast majority of UK businesses rely on international trade – whether through global customers, suppliers or manufacturers – this is a real issue. As our survey found, 82 % believe protectionism increases the price of goods, two-thirds( 66 %) believe it increases international tensions and risks conflict escalation, and almost the same number( 62 %) say it creates job losses. instability. Cross-border payments, for instance, can be a key source of complexity in a high-tariff environment, carrying hidden expenses such as currency conversion fees or unfavourable rates. SMEs need to be ready to implement hedging strategies to stabilise costs and limit the impact of market movements on sales margins. In doing so, they can also improve cash flow forecasts and secure profitability by locking in exchange rates. This helps ensure more predictable financial outcomes in international trade.
Moreover, SMEs that operate in foreign markets need to be kept up-to-date with the latest risks and opportunities. They need real-time market monitoring to mitigate unexpected costs and avoid overpayment on foreign currency transactions. With specialised support through monitoring real-time market shifts, and working closely with trade advisors for risk management, SMEs can reduce financial uncertainty, protect cashflow and strengthen supplier relationships.
To navigate this risky trade environment, SMEs will need to seek out the right support to manage the complexities of international
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