Keeping the export faith
The debt crisis in the Eurozone has led to fears the UK economy could be hit hard due to a dip in exports. New figures from the Chartered Institute of Purchasing and Supply show growth in exports slowed sharply in June.
Moreover, Britain’s trade deficit is now at its widest since September 2008, the Office of National Statistics has revealed. Turbulent economic conditions in Europe and the instability of the Euro have been blamed.
But one finance broker believes that despite the wavering Euro, exporters should not be discouraged and should continue to take advantage of the relative weakness of the pound against other major currencies which makes goods and services cheaper abroad.
Andrew Bullard, head of business at specialist finance broker Cashflow UK, said: “UK exporters have helped the country out of recession and without them the economy would be in a far worse state.
“Manufacturers have reported a significant increase in overseas orders in recent months prior to June, and they should continue to develop export markets, if not in Europe then in the Middle and Far East and the United States.”
And finance need not be a hurdle to growth in new territories.
Export factoring releases cash from invoices as soon as they are issued, giving businesses an immediate and on-going supply of working capital that can be used to pay suppliers, so improving the overall management of the business and cutting out the need for expensive bank facilities.
Mr Bullard added: “Export factoring can be the ideal solution as it frees up cash from invoices, allowing a company to concentrate fully on developing their export offering.”
Providers have specialist overseas sales ledger management skills, meaning that the hassle of collecting payment from customers in unfamiliar countries and cultures is removed. They undertake multi-lingual credit control and are sensitive to legal and cultural differences, freeing up valuable management to develop new and existing business.
Mr Bullard added: “With flexible finance solutions such as export factoring, there is still plenty of scope to develop business abroad, which presents positive opportunities for small and medium sized businesses and the economy as a whole.”
Cashflow UK are the country’s leading finance brokerage specialising in factoring and invoice discounting and their specialist team of financial experts are able to offer impartial advice and find your client the best provider.
If you have a potential client situation, contact Cashflow UK today on 0800 132 156.
