WEBVTT - Avoid cashflow challenges when exporting

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Cashflow can be a significant challenge when exporting.

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So, it’s important to manage it carefully.

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Let’s look at some of the risks and the impact they can have.

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Fluctuating exchange rates between sterling

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and other currencies can alter profit margins.

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Long shipping times and customs delays are not uncommon

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and can alter when you receive payment for products.

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So you need to plan for this eventuality.

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Political instability and natural disasters can potentially slow down delivery

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even if your destination country is not affected.

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Research your market to know if insurance provision 

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and risk management procedures apply.

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Language barriers can cause cashflow problems.

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Local staff dealing with payments within your export country may 

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not necessarily speak English, which may slow down communication.

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So it’s important to establish a relationship early on

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and translate requests as best you can.

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Equally, when exporting to a new region

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you may have to pay an unexpected local tax.

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So it’s worth doing your homework as much as you can.

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Plan your cashflow. Once you’ve considered these factors

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it’s time to create a cashflow forecast to help you decide

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if you can comfortably cover running costs, or whether you require

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finance such as bank guarantees and bonds to cover any funding gaps.

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Or perhaps, additional finance such as a line of credit or export invoice finance.