Despite fears surrounding Brexit and supply chain disruptions from the pandemic, the UK export industry is continuing to thrive, as the total exports of goods increased by £0.4 billion in August 2022.
This comes as a welcome boost to businesses looking to expand in this field.
So what steps can growing export businesses take to ensure that they make the most of this continued surge in opportunities?
We take a look at some of the marketing and financing options available to all UK business sectors which can help to facilitate continued growth when trading with overseas partners.
1. Use trade finance to fulfil large orders
No matter where you sit in the overall supply chain, not being able to finance the production and delivery of larger orders can hinder your business’ growth. A large order could be great for your business, but you might not have the capital to pay for it upfront.
Trade finance could be a solution that would help a growing export business. Trade finance is a type of business loan that helps you fund your suppliers with upfront payments, allowing your business to fulfil large orders without eating into your cashflow. Taking on and delivering these larger orders can quickly lead to growth for your export business.
2. Negotiate terms with your suppliers
Suppliers can offer lines of credit, which means a business could get materials or goods from their suppliers, without needing to pay upfront. Accessing lines of credit can improve your business cashflow and allow you to take on more orders, leading to the growth of your export business.
You should try to negotiate better terms with your suppliers so that you can access a larger line of credit over a longer period.
A good credit score will put you in a better position to negotiate terms with your suppliers as it shows you are creditworthy and will repay the outstanding amount back.
With our Credit Review Service you can improve your credit score and credit limit to negotiate better terms with your suppliers. With a larger credit limit, you can access 0% working capital in trade credit, bringing a positive impact on your business’ cashflow.
Improve your business' credit limit.
3. Speed up your payment cycle
One of the biggest obstacles that export businesses face when trying to grow is the dip in their cashflow whilst waiting for invoices to be paid. Many small businesses don’t have the cash reserves to operate whilst waiting 90 days or more for larger orders to be settled.
Invoice finance is commonly used by businesses to speed up their payment cycle to improve their cashflow. With this type of business loan, rather than waiting months for payments to be made, a large percentage of each raised invoice can be advanced to your business, allowing you to invest funds in future orders without affecting your cashflow.
Explore your invoice finance options.
4. Outsource credit control
Creating, implementing and managing a smooth credit control team can be a real headache for small businesses. Working within export, you may need to deal with businesses across multiple time zones, languages and currencies in an effort to get paid on time and in full.
Invoice factoring is a type of invoice finance in which the lender will take on the responsibility of credit control on your behalf. This means they will be responsible for chasing payments and credit profiling new customers as well as building healthy relationships with these companies, to ensure you get paid on time.
5. Access business finance
Accessing business finance is vital for the growth of your export business. With the financial resources from a business loan, you could invest in marketing and advertising campaigns to attract more customers, hire skilled staff to expand your operations and seize growth opportunities.
There are different types of business loans that could fit your business needs. With your Capitalise for Business account, we'll be able to quickly and easily match your business with specialist lenders who have a proven track record supporting businesses within your sector.
You'll be able to manage multiple applications from one central hub, leaving you to focus on what matters most – growing your export business.
Original post 08/02/2017
Updated 16/06/2023
