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Start-up fintech helping SMEs to save big on foreign invoices.

March 29, 2022

This article originated from the Xero blog. The XU Hub is an independent news and media platform - for Xero users, by Xero users. Any content, imagery and associated links below are directly from Xero and not produced by the XU Hub.
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SMEs are all too aware they incur significant losses when paying international invoices but now, for the first time ever, they have the tools to do something about it with the release of Fluenccy’s Invoice Management Software.

Last year, Australian FinTech Startup Fluenccy released Currency Score, an innovative approach to foreign currency planning for time and resource poor SMEs. Using international invoice data already sitting in Xero, Currency Score provides the world’s first global industry benchmark allowing SMEs to see how effective their currency purchasing has been in comparison to, say, a large corporation with a treasury team and a sophisticated hedging strategy.

Founder, Tony Crivelli notes “SMEs knew they were losing money on most foreign currency invoice payments because Xero would tell them. They just didn’t know how to fix it.”

Designed and built in Australia and the UK, Fluenccy is now attracting interest globally.

Since its official launch, Fluenccy has produced over 130 Currency Scores across the UK, Australia and the United States. These scores represented over 15,000 invoice payments totalling over US$200m, and unfortunately delivered some unpleasant surprises for the SMEs involved.

In every case, each of the 130 SMEs lost money on unexpected FX moves, which came to a staggering $1.25m combined loss in 2021 alone. Furthermore, for the majority of SMEs that still believed in the rate averaging out over time, it quite simply didn’t. In fact, they paid an extra $5,000 for buying the foreign currency at the last minute - usually at the time of making payment.

The real kicker came for the more proactive SMEs in the industry benchmark. The benchmark proved they didn’t have the time or expertise to watch and react consistently to rate moves. Many could have completely eliminated their $5,000 loss and even walked away with some savings by simply following the benchmark.

Crivelli comments that “the SMEs reaction to their Currency Score was compelling. SMEs clearly wanted to buy like the benchmark. So, with today’s release of our Invoice Management Software (IMS), they can do that.”

Following on from Currency Score, Fluenccy has now launched its first foreign currency booking engine - its Invoice Management Software (IMS). The first of its kind and designed specifically for SMEs, it offers powerful software that makes smart currency purchasing simple for smaller businesses.

Just like Currency Score, IMS is now available on the Fluenccy app. The app is a simple, secure add-on to existing accounting software like Xero, making it even easier to use. SMEs can easily upload or sync their foreign invoices directly from their accounting software, and set up a plan within the Fluenccy app that connects to their chosen currency provider for optimised and automated savings.

“Combining the use of data and proven technology, IMS helps SMEs reduce FX loss and target savings with industry-best practices. It means SMEs don’t have to keep an eye on the rate anymore because that is what IMS does for them – and it’s always on,” says Crivelli.

Why leave it there?

To find out more about Fluenccy

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