Name: Cover-Up
Based: Bridgend
Website: www.cover-up.com
Cover-Up was founded in 2009 as a result of my struggle to find a case for my Kindle. Now we design and create accessories for more than 150 tablets, e-readers and smartphones.
Since the beginning, our cashflow has been fairly steady as most of our orders are paid for online at the time of purchase. This has allowed us to focus on growing the business and not on chasing payments.
We soon began selling internationally and now send orders to more than 30 countries every day. We receive payments in multiple currencies, send money to international suppliers and we’re registered for VAT in several European countries as our sales exceed their distance selling thresholds.
Initially all of our income was converted straight back into pounds and deposited into our UK bank account, creating a substantial cost for currency transactions and associated fees. Although the cost of each transaction is small, we made tens of thousands of transactions every year, and it quickly added up, dramatically reducing our available cash.
Working alongside our bank, we opened foreign currency accounts in several countries, allowing us to reduce the number of currency transactions we make. Now, we can accept US dollar payments into our US dollar account and pay relevant suppliers without incurring any fees.
When we do exchange currency, we always keep an eye on the markets and trade at the right time. As a result, we’ve turned a monthly loss into a monthly surplus.
Jonathan Ling is the director of Cover-Up.
