Manage the headache of payment terms with export finance.

If you’re a business that sells to other businesses, it’s likely that you’ll recognise the need to manage cash flow. It’s one thing to sell within the domestic market, it’s another to sell overseas. The upheaval to international supply chains brought about by covid 19 and further uncertainty coming down the tracks post Brexit mean that many businesses are longer to new markets to increase sales. This article highlights things to consider and also explains export finance to help you decide if it’s right for you. 

THINGS TO CONSIDER 

Lack of finance and certainty of payment are two key challenges any business will face when trading. It can be a long road between when you send the goods and when you receive payment. Whether domestic or overseas, the payment terms can be long and hard to manage. 

Even if you’ve won the business and negotiated terms, there is no guarantee that you will be paid when your customer says they will. Add the extra distance of shipping and delivery, then understandably the period of time can extend even longer.

Not only that, but more time and energy is required to check out the buyers are credit worthy and obtain references. Everything about the sales process is extended. But this does not mean that you shouldn’t trade overseas; it’s about careful planning and financial management to make sure that you don’t put unnecessary financial strain on your business. 

And it’s not all bad news nor all down to you! There are products, such as export finance and trade finance, that have been designed specifically to bridge this payment gap. 

HOW EXPORT FINANCE CAN HELP

Export finance offers a way for businesses to release working capital, specifically from overseas transactions, that might otherwise remain tied up in receivables for long periods of time.

This type of finance is very specific, tailored to suit the financial demands of individual companies who export. It allows business to grow quickly by widening their sales channels into new markets. It can also increase your trade with large foreign multinationals who will demand longer payment terms.

Before agreeing terms of business, it is sensible to speak to a finance provider, such as Accelerated Payments, to see if they can provide you with finance for receivables to your new customer. By seeking pre-approval on overseas debtors, you can arm yourself with the knowledge that you can trade comfortably with new clients up to an agreed level. 

Export finance will also often come with bad debt protection included in the price meaning that you will be covered and paid for at least 80% of the receivable value even if your debtor goes out of business. Here at Accelerated Payments the cost of bad debt protection is always included in our selective receivables finance offering. So, you’re safe in the knowledge that we’ve got you covered. Read on to see how we could help you.

HOW CAN ACCELERATED PAYMENTS MAKE EXPORT FINANCE WORK FOR YOU?

We can help you release funds tied up in foreign buyer receivables so that you can continue to grow. 

As we work on a selective invoice basis you remain in control of which invoices you want to sell and when. There are no long-term contracts or personal guarantees involved and there is no restriction on the level of export sales. 

We also base our funding decision not on your business strength, but on the quality of your debtor so we’re often able to help the first time (as well as the seasoned) exporter. 

It’s quick and easy to access funds, which means that you can get the cash flow you need to continue to grow your business.