Business Overdrafts
Be financially flexible with a business overdraft.
Understand the risks in your international-trade cycle
International-trade is a great opportunity to reach more customers and grow your business, but there may be risks like:
- Not getting paid on time for exports.
- Not having imports delivered on time.
- Changes in currency exchange rates.
We can help you find a solution to manage these risks, so you can trade with confidence.
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Our export trade cycle shows the typical stages in international trade.
When you sell goods and services outside the UK, you may be exposed to risks at any stage in the trade cycle, like extensions to the terms of payment, which could have an impact on your cash flow.
Understanding your trade cycle can help identify the different types of risk at each stage.
Choose a stage in the typical trade cycle to see what risks you may find:
Tendering
Changes in currency exchange rates during the tendering process can have a negative impact on your costs of income.
Contract signed
Your contract should include clear instructions and responsibilities for both buyer and seller, or your business may be at risk of a dispute with your customers.
Materials sourced
If you don't consider changes in foreign exchange this could impact the price of producing your goods.
Goods produced
If the quality or source of your production material doesn't meet local regulations, your business may be at risk of a dispute over terms.
Goods delivery
Not clearly setting out the terms of delivery, like who is responsible for storage or insurance, could put your business at risk.
Goods invoiced
Your invoice should be sent with a clear payment date and meet any local requirements or you may not be paid.
Goods arrived
If details of how your goods should be handled on arrival aren't clear and agreed, you could be at risk of delays or damage to your goods.
Invoice paid
The risk of your invoice not being paid can have a negative effect on your cash flow and profitability.
- A change in exchange rates can decrease the amount you receive for your exports. This may affect your cash flow and profitability.
Our import trade cycle shows the typical stages in international trade.
When you source goods and services outside the UK, you may be exposed to risks at any stage in the trade cycle, like loss in transit or late delivery of goods, or changes in the exchange rate.
Understanding your trade cycle can help identify the different types of risk at each stage.
Choose a stage in the typical trade cycle to see what risks you may find:
Sourcing
Local costs and changes in the currency exchange rate may put the price you agree with suppliers at risk.
Contracts
A poorly written agreement, without detailed terms and conditions, can put your business at risk of a dispute with suppliers.
Pre-shipment
Without a pre-shipment check you're at risk of not receiving the goods you've ordered or the quality you expect.
Shipment
Importing goods over long distances can reduce the control you have over the risks of loss, damage or delay.
Storage
Not having the right storage for your goods when they arrive can put them at risk of damage, loss or deterioration which may affect your costs.
Invoice received
If details on the invoice differ from the agreement, you may be at risk of paying too much of paying for goods you haven't received.
Invoice paid
Paying the invoice before you've inspected your order can put your business at risk of a dispute over the terms of your agreement.
- Changes in currency exchange rates can increase the cost of your imports and affect your cash flow and profitability.
Key international trade risks
From the risk of not getting paid to currency fluctuations, we have a solution for the key risks your business may face when trading overseas.