Getting the finance you need
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International trade can be very profitable but the nature of working with overseas customers means that you need to be prepared with the right products and services to manage your cash flow effectively.
You may have to buy materials for an overseas order and waiting for payment can take longer which can stall the functioning of your business. There are finance options designed to help support your ambitions to trade overseas:
Pre-export finance – your bank provides a loan tailored to the length of gap between paying for supplies and receiving payment from your buyer.
Post-export finance – when your customer insists on extra time to pay once goods have been received, your bank can help with finance to protect your cash flow.
UK Export Finance (UKEF)
UKEF is a government department that helps your overseas trading opportunities by sharing short term financial risk. It does this by offering insurance against your customers’ non-payment – or providing a guarantee to your bank to back an export loan or bond.
Cash flow calculator
As well as taking advantage of tailored funding solutions, you can help to keep your cash flow moving in a number of ways.
Late payments can cause cash flow problems, reduce your profits and waste valuable staff time when chasing payments. So how could you help to prevent this? Here are a few points to consider:
- undertake a credit check on your buyers to make sure they can pay. But don't forget your suppliers: a reliable supply chain is equally as important
- ensure your sales contracts include detailed payment terms and the date by which invoices should be settled: make your contracts legally binding
- consider including a financial penalty for late payment, but also balance this with incentives for early payment too
- don't rely on a single buyer or supplier - using a number of buyers and suppliers helps spread the risk in the event that one of them should fail
Once you have identified where you require funding, we have a range of solutions tailored to your export and import needs.