Ups and down of the export market
The fluctuating performance of the UK’s export markets means businesses should be securing their finances to ensure they are well prepared for the rise and fall in demand over the coming months says Andrew Bullard, head of business at Cashflow UK.
Figures from the Office of National Statistics showed a £900 million rise in vUK exports for June, reducing the goods deficit to £7.4bn from £8bn. The fall was helped by the strong performance of sectors such as manufacturing across the second quarter of the year. The weakening value of the pound led to an increase in demand for goods from overseas and also helped in reducing levels of imports.
However, more recently the purchasing managers’ index contradicts this by reporting a sharp slowdown in the performance of the manufacturing sector. This is likely to have a negative impact on the UK’s exports over the coming months.
Andrew Bullard says: “Conflicting reports and the continuing fluctuations in the UK’s export performance means it is difficult for firms looking to trade oversees to make confident decisions based on business performance. However, the value of the pound against many other currencies is still weak and firms should be confident to utilise the wide array of products and services we are able to offer when trading overseas. It is important that companies are not complacent in their outlook but look to build on the growth we have witnessed in certain areas of the market to help the UK to export its way to a full recovery.”
“To further improve our trading position in the coming years, and reduce our significant trade deficit, the British Chamber of Commerce has called on companies to look at trading more with new and emerging markets in places such as Asia. But, for businesses to be able to go in search of new opportunities and to further develop existing relationships for growth, they must have access to funding. Working with an export finance provider can help ensure funding is in place to finance overseas orders.
It is crucially important that UK businesses are reviewing opportunities in trading abroad and are not disadvantaged when compared to foreign rivals when it comes to accessing finance.”
“Export finance provides a comprehensive funding package, in the form of an ongoing supply of cash against the value of invoices raised. Many providers also offer a team of experienced, multi-lingual staff that will chase and collect outstanding customer invoices on the client’s behalf, eliminating the frustration and hassle of dealing with any cultural or communication barriers.”
“Cash flow is a key issue for any business, large or small, when trading overseas and it is important to be aware of the benefits that this form of alternative funding can bring.”
