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Managing international-trade risk
Trading overseas is a good way for your business to reach more customers and grow your business, but there may be risks. We have solutions to help your business trade safely and manage the key risks in international trade.
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What are the risks?
When you buy and pay for goods or services from a new overseas supplier but do not receive them as per the terms of the contractual agreement, your business may be at risk.
How we can help
- Strong support team - an experienced team to help you confidently reach new markets successfully.
- Personal support - our Relationship Managers and dedicated UK Trade Services team will make sure you get the right support for your business.
- International Trade Portal - the latest market reports, for the overseas locations you’re trading in, are available on our International Trade Portal . This market insight can help you find the right trading partners and find out more about local trading requirements.
- Range of solutions - we have solutions to help support your international business goals by managing some of the key financial risks like securing payments with new overseas trading partners.
Our solutions
- Documentary collections
Allows you to control when the goods and shipping documents are released to your buyer. - Letters of credit
Guarantees payment by the buyer’s bank when you present the correct documents. - Foreign guarantees
You can use guarantees (also known as bonds) to give new customers confidence you’re able to perform under a contract or make an advanced payment.
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What are the risks?
A change in financial markets can affect every UK commercial business that imports or exports.
An understanding of how exchange-rate risk can impact your business can help manage risks when you:
- Import or export goods and services.
- Tender and negotiate overseas contracts.
- Deal with overseas acquisitions and disposals.
- Create or repay debt in a currency other than Sterling (GBP).
- Price raw materials in foreign currency.
Benefits of managing exchange-rate risk
- Manage your exposure to fast-changing currency markets.
- Protect your profit margins.
- Negotiate invoice or contract terms with your suppliers with confidence.
- Compete with overseas suppliers on cost.
- Manage your currency cash flow.
- Fix your costs.
Exchange currencies online or by phone with our Financial Risk Managers.
How we can help
- Foreign exchange strategy - our local Financial Risk Managers will work with you to develop a foreign exchange risk management strategy using a solution suited to your specific currency needs and business goals. We’ll consider how sensitive your business is to currency movements, and offer solutions that give you cost certainty and profit protection.
We’ll also give you access to:
- Market information - our electronic access to foreign exchange markets -Arena - will help you monitor movements in the market.
- A 24hr phone service - for market information and booking round-the-clock.
- Economic insight - a suite of economic reports and market intelligence to help you respond to market developments with confidence.
Our solutions
- International payments
Make international payments to over 100 countries using our online channels through Internet Banking or through our mobile apps. - Buy and sell currencies
Known as ‘Forwards’, you have the option to buy or sell any currency at an agreed exchange rate on an agreed date or range of dates. - Pre-agreed currency rates
For a fee, you have the option to buy currency at a pre-agreed rate on a specified date. You could benefit from any favourable movements in the market on this date.
What are the risks?
When exporting to overseas customers, they may not meet their contractual obligations.
They may also not pay for the goods and services you’ve sold to them.
There is also a chance they may not pay the correct amount or pay by the agreed date. Our team of Financial Risk Managers can help you identify, quantify and manage these risks to help protect your business.
How we can help
- Strong support team - an experienced team to help you confidently reach new markets successfully.
- Personal support - our Relationship Managers and dedicated UK Trade Services team will make sure you get the right support for your business.
- International Trade Portal - the latest market reports, for the overseas locations you’re trading in, are available on our International Trade Portal . This market insight can help you find the right trading partners and find out more about local trading requirements.
- Range of solutions - we have solutions to help support your international business goals by managing some of the key financial risks like securing payments with new overseas trading partners.
Our solutions
- Documentary collections
Allows you to control when the goods and shipping documents are released to your buyer. - Letters of credit
Guarantees payment by the buyer’s bank when you present the correct documents.