November 2026: A third (32.5%) of businesses say that staffing costs have increased in the past three months according to analysis of the latest business insights data from ONS government figures* by global financial platform, Currenxie.
- Businesses expanding their international footprint increasingly at risk of cash flow challenges that eat into margins and stifle growth
- Currenxie research reveals that 94% of UK businesses have suppliers or customers in international markets
- 91% of UK businesses who have expanded overseas in the last 12 months are seeing increased growth and profits
Increased staffing costs are impacting the finances of both businesses and consumers as nearly four in ten (37.5%) businesses in the UK say that they have been forced to increase their prices for customers as a result.
These financial pressures are partially driven by increases to the national living wage – rising from £12.21 to £12.71 – as well as a spike in National Insurance Contributions that were introduced in April 2026.
Increased staffing costs are also leading employers to expand their international talent pools. Recent research from Remote shows that nearly half (46%) of UK employers have increased their search for talent overseas in response to a domestic skills shortage.
Expanding internationally can not only unlock access to a wider talent pool, but it also provides significant financial benefits. Previous research from Currenxie highlights that 94% of UK businesses have suppliers or customers in international markets whilst 91% of UK companies that have expanded internationally in the past year have seen increased profits**.
Overseas expansion also creates cash flow challenges
As businesses expand their international footprint and make more overseas payments, they are at increasing risk of cash flow challenges as delays to customer or supplier payments create additional pressure on margins.
In order to protect margins, companies must look to mitigate cash flow risks. For businesses managing invoices in multiple currencies across overseas markets, foreign exchange (FX) fees become increasingly important and are a major risk factor to operational margins.
Pressurised margins can also lead to reluctance to expand internationally - previous research from Currenxie shows that nearly six in ten (57%) UK businesses say that FX costs on cross-border payments are far too high and curbing growth. Seven in ten (71%) businesses say that cost-effective international payment options are critical to their global competitiveness.
Specialised fintechs can support businesses to manage international cash flow, including unlocking access to fast, secure and reliable multi-currency payment and treasury management services which support growth at home and overseas.
Sam Coyne, European CEO at Currenxie explains: “As UK staffing costs continue to rise, we are seeing that high-growth companies expanding internationally are looking to bolster their overseas talent pools to drive growth.
“However, overseas expansion can bring its own set of challenges that can eat into margins. Cash flow becomes a critical issue for businesses working with overseas customers and suppliers when payment delays can cause an issue across the entire supply chain. Businesses need access to solutions that ensure reliable and low-cost payments to mitigate risk, especially when operating across markets with multiple currencies. Reducing FX fees is a crucial step to protect margins and support international expansion.
“Fintech providers can support international businesses in a way that traditional banks simply cannot.
By offering secure, cost-effective and predictable international payments as well as access to overseas business accounts, fintechs help businesses manage cash flow, mitigate risk and facilitate growth plans.”
Currenxie is trusted by over 17,000 clients across 100 countries and unlocks access to a full range of payments solutions empowering SMEs to operate globally. Currenxie offers SMEs savings of up to 61% on cross-border FX payments compared to competitors*. Currenxie now surpasses $10 billion in annual payment volume, growing 50% year over year with over $20 billion transferred for merchants to date.
