London specialty business lender Just Cashflow (JCF) is partnering with London FinTech Ebury to roll out foreign exchange (FX) services, Just Cashflow announced in a company blog.
The FX solutions were developed for small- and medium-sized businesses (SMBs) dealing with business-to-business (B2B) cross-border transactions. The services put an end to uncertain currency exchange due to Brexit and locks-in rates for future transactions.
“Today’s business environment is one of unprecedented upheaval, and small businesses often feel the brunt of these fluctuations,” said John Davies, executive chairman at Just Loans Group (JLG). JCF is a subsidiary of JLG.
FX specialist Ebury handles B2B exchange capabilities in more than 130 currencies. SMBs can lock-in rates to better control their international payments.
“From conversations with our customers, it is clear they are concerned about the impact of this uncertainty on invoices and receipts from overseas,” Davies said. “Time-starved business owners need to ensure their all-important cash-flow and can’t afford to risk currency fluctuations working against them.”
The company estimated 45 percent of SMBs do business with overseas partners, with most relying on their existing bank to provide them with FX services. This practice can result in rates that are not competitive.
The one-size-fits-all approach of traditional banks doesn’t always work for SMBs. Research from JCF found that 70 percent of SME owners don’t feel their existing banks provide for their needs.
“At Just Cashflow, we believe that lenders have a responsibility to provide SMEs with more than just money, which is why we have decided to provide competitive and efficient FX payments for our customers going forward,” Davies said.
Ebury was founded in 2012 by Salvador Garcia and Juan Lobato. The FinTech works with over 45,000 businesses and has traded over $23 billion in foreign exchange in the past 12 months.
Earlier this month, Spanish bank Banco Santander closed a deal to acquire just over 50 percent of Ebury for $453 million. The acquisition is scheduled to close in the first quarter of 2020 and is intended to help boost Santander’s global payments business.
Ebury operates in 19 countries and will expand in Latin America and Asia with Santander’s investment. The deal is expected to value Ebury at around £700 million ($904 million).