Payments
•What 'Good' Really Looks Like in Payments and FX for UK SMEs
There is no single 'perfect' setup for international payments and FX. What good looks like depends on size, complexity and how fast a business is growing. The Stable team take a closer look...
There is no single “perfect” setup for international payments and FX. What good looks like depends on size, complexity and how fast a business is growing. Multi-currency accounts play a big role in this, but the capabilities required change dramatically as a company scales.
To bring this to life, here are three fictional UK businesses at different stages, each with a setup that fits where they are today.
1. Sprout & Spanner Ltd
10 people, under £1m turnover
Sprout & Spanner is a small startup importing eco-friendly homeware from Europe. It began life in a spare bedroom and still runs a refreshingly simple operation.
What good looks like:
They need to pay suppliers in EUR and occasionally USD, without wrestling with banking portals or unclear FX costs.
Multi-currency account needs:
- A single multi-currency account holding GBP, EUR and USD
- One European IBAN for EUR payments via SEPA
- No need for multiple local collection accounts
- One or two virtual cards for online subscriptions and ad spend
Typical setup:
A digital FX provider alongside a UK business account. Payments are initiated online, balances are converted when needed and reconciliation is straightforward.
Pricing expectations:
FX margins of around 0.4 percent to 0.6 percent, with minimal transfer fees.
A high street bank alternative would typically offer only GBP accounts, international wires and FX margins of 2.5 percent or more.
2. Nimbus Gear Co
100 people, £10m turnover
Nimbus Gear designs smart outdoor equipment and sells globally through ecommerce platforms. Growth has been fast and international revenues now arrive daily.
What good looks like:
They need to collect, hold and deploy multiple currencies efficiently, while keeping finance operations under control.
Multi-currency account needs:
- Multi-currency IBANs for EUR and GBP
- Local domestic collection accounts for USD and EUR to receive customer payments without international wire fees
- The ability to hold balances in several currencies
- Multiple virtual cards linked to currency balances for teams and platforms
- A small number of physical cards for travel and supplier meetings
Typical setup:
Nimbus Gear uses a specialist FX and payments provider for collections and conversions, while keeping its high street bank for lending and core GBP cash management.
Pricing expectations:
FX margins of 0.25 percent to 0.4 percent, faster settlement and transparent fees.
Their bank can technically handle these flows, but usually via SWIFT payments, slower settlement and materially higher FX costs.
3. Ironclad Components Group
250 people, £50m turnover
Ironclad Components is a long-established UK manufacturer with suppliers across Asia, Europe and North America. FX exposure is now a board-level concern.
What good looks like:
Control, resilience and risk management, without losing operational flexibility.
Multi-currency account needs:
- Multiple local collection accounts across key regions
- Dedicated multi-currency IBANs for operating entities
- Segregated currency balances aligned to treasury policy
- Virtual cards for procurement and software spend with granular controls
- Physical cards for senior staff, with spending limits and reporting
- Integration with ERP and treasury systems
Typical setup:
A dedicated FX and payments partner providing collections, hedging tools and structured reporting, supported by banking relationships focused on credit facilities and cash pooling.
Pricing expectations:
FX margins of 0.1 percent to 0.25 percent depending on volumes and products used.
High street banks can offer similar tools, but often at higher cost and with less flexibility or transparency.
A simple comparison
| Company | Turnover | Multi-Currency Capabilities | Specialist Provider Pricing | Typical High Street Bank |
|---|---|---|---|---|
| Sprout & Spanner | < £1m | Basic multi-currency account, EUR IBAN, virtual cards | 0.6% to 0.8% | Limited, FX 2% to 3% |
| Nimbus Gear | £10m | Multi-currency IBANs, local collections, virtual and physical cards | 0.3% to 0.6% | Slower, higher FX |
| Ironclad Components | £50m | Full local accounts, treasury alignment, advanced card controls | 0.15% to 0.3% | Higher cost, less flexible |
Where Stable fits in
Stable helps businesses at each of these stages assess whether their payments, FX and multi-currency setup still fits the reality of how they trade. That might mean introducing local collection accounts, reducing FX costs, simplifying providers or adding more control around cards and balances.
Good setups evolve. Stable helps make sure they evolve deliberately, not by accident.
