The sale of goods and services abroad can be a daunting task for small businesses. In fact, HMRC figures  show that most exporters are veterans in international trade, the average range of British companies engaged in trade is 10 years. In turn, these businesses contribute to 85% of the value of British exports and 83% of imports.
This could mean that many small and medium-sized enterprises (SMEs) are still reluctant to work with international debtors or struggling to build a penetration strategy that begins their international expansion. It is certainly a concern for business owners who work daily.
Our work with the BCC (British Chamber of Commerce) aims to encourage and support more UK SMEs to overcome barriers, to export by unlocking the growth of foreign markets. To do this, we must work closely with the individual chambers to help their members overcome the challenges facing British exporters. Sometimes it is the case that SMEs do not have the experience or resources to export with confidence, but that is where their work can be supported.
The main challenges that importers and exporters of the United Kingdom face in 2018 have been identified. The most cited were monetary fluctuations, administration, logistics management, management service, VAT and freight payments.
There are several options available to help SMEs to overcome these unique financial and operational challenges, from finding the right means to access support from government sources such as the “export is great” initiative. </ strong >
Long-term payment terms often hamper cash and merchandise, export finances can help SMEs to overcome this challenge. It does so by unlocking money on unpaid bills and providing specialized credit control support, helping companies to manage their debtors abroad.
However, exporters will also have to pay suppliers. Trade financing allows companies to buy and sell merchandise before payments are made. This does not guarantee payment to suppliers before the goods are in transit, making payment when items are shipped. This means that companies can build trust with suppliers due to payment guarantees, which allows them to negotiate discounts for prepayment.
Trust is an important part of any business, but the secret is to work with others in the supply chain to make sure everyone is on the same page when it comes to exporting. Selling or buying goods and even services can be a complex process for SMEs, so it is essential to know who is on the other side of the phone. That is why it is sometimes better to organize a face-to-face meeting with suppliers, perhaps you will reap more rewards.
Manage monetary fluctuations
Financial specialist Kash Ahmad, from the United Kingdom reports in his investigation about the monetary fluctuation, that more than two thirds (67%) of SMEs that trade abroad have been economically disadvantaged due to the monetary volatility caused by Brexit in the Last two years. In addition, almost a quarter (23%) say they have never reviewed their currency needs.
Currency exchange services can help companies to manage their exposure to their volatility, allowing them to set rates to avoid falling sales margins.
The BFS Export Finance team specializes in working with thousands of British exporters to help them navigate international trade terms with language, currency, time zone and legal support.
BFS will be represented at the BCC International Trade Summit (British Chamber of Commerce)
 HMRC, (Her Majesty’s revenue and customs – the equivalent of the Treasury in Spain in the United Kingdom).