The solution is designed to help small businesses manage spend while traveling across borders, the companies said in a press release on Thursday (Feb. 7), while also helping SMBs save on foreign exchange (FX) costs. Employees who use the prepaid card can have their transactions monitored by managers in real time.
The collaboration marks Funding Options’ entrance beyond small business lending, according to the firm’s CEO and Founder Conrad Ford.
“A pre-loaded currency card is the simplest way for small business owners to manage their business travel expenses, and especially for those who regularly operate internationally,” he said in a statement. “We are excited that, through our partnership with Caxton FX, we are now able to offer businesses our unique Currency Card with preferential currency rates and additional financial management features.
He continued, “We believe that the partnership with Caxton FX is an important milestone for Funding Options as we begin to explore what other financial solutions we can offer small businesses to help them better manage their finances while saving time, money and stress.”
In another statement, Caxton FX Director of Treasury Solutions and Partnerships Andy Demetriades said small businesses that make purchases across borders often struggle with unexpected FX fees, “while expense reconciliation post-travel can be problematic.”
U.K. small businesses are facing greater exposure to FX risks as a result of Brexit, analysts warned.
“SMBs could be exposed to significant sterling fluctuation,” said Western Union Senior Currency Strategist Nawaz Ali in a statement sent to PYMNTS in December. “If the current Brexit deal passes through Parliament, GBP/USD could rally $1.30 to $1.32, and GBP/EUR could rise €1.15 [$1.30 USD] or higher.”
Funding Options’ Currency Card is rolling out only days after the firm announced a collaboration with ING, which will see the financial institution link its Dutch small business customers to Funding Options’ marketplace finance platform.