How to export safely with the help of The Prophet Group
14/12/2011
Categories:
Credit Insurance (3)
With the UK economy looking more than a little gloomy just now, is it a good time to look at exporting overseas?.
Even nearby foreign markets are considered risky, if only because of different legal systems that may be daunting when you need to take action against a defaulting overseas customer. So there is much to contemplate when considering export sales, in order to minimise your risks and guarantee payment for goods that are on foreign soil.
CBI has just published a report “Winning overseas: boosting business export performance”. In the report they state that “Business investment and exports will be the dual drivers of future growth – necessary to lift the UK from the worst economic crisis in living memory.”, and those exports could boost the economy by £21bn!
The report suggests that businesses should look to emerging economies Brazil, Russia, India and China (BRIC) as the demand for goods and services will increase as these economies expand. Other export opportunities could be tapped into in the “Next 11”- Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, South Korea, Turkey and Vietnam.
Currently only 1 in 5 SME’s are exporting and from the information in the report it seems to indicate that it is due to lack of support from the government and the ability to secure finance assistance. John Crindland (CBI Director General) spoke at the CBI annual conference about the report; he believed that the UK needed to "explore ways of removing barriers to finance, reducing risk and the viability of introducing an export tax credit to incentivise exploratory export activity"
Several of our clients feel very similar especially about the financial risk associated with exporting overseas.
We are specialist export credit insurance brokers dealing with all export credit insurers but one of a few also authorised by UK Export Finance. We can advise you on the best approach when it comes to export trade credit insurance. We are able to approach specialist export insurance companies to find the best policy to suit your needs. If a private sector insurance company is unable to secure the risk then we will then approach UK Export Finance. UK Export Finance is the UK’s export credit agency (Formally known as ECGD). The agency has launched some new products which aim to support smaller companies who are looking to export goods and services overseas.
To find out more about how Prophet Group can help your business to expand through exporting overseas, please click here- http://www.prophetgroup.com/trade-credit-insurance/
References:
CBI Winning overseas: boosting business export performance Report
http://www.cbi.org.uk/media/1168506/exports_report_a4_final_indd__2_.pdf.
UK Export Finance: http://www.ecgd.gov.uk/
