Businesses urged to maximise export opportunities
Businesses need to maximise opportunities for growth offered by export markets, says leading trade credit insurer Atradius.
To coincide with the UK Trade and Industry’s Export Week on 7 April, Atradius is urging British businesses to take advantage of the nationwide support available for trade overseas which is central to economic growth.
Marc Jones, head of sales, said: “The Chancellor has made clear that the UK needs to increase activity when it comes to exporting and within the Budget, measures were taken to support businesses to export. With all eyes now on exports to boost the UK economy, there has never been a better time to capitalise on markets.”
Export growth in the UK is forecast at 3.3% according to the IHS Global Insight, helping to drive a predicted increase in GDP of 2.7% by the OBR. To support exports, the UK Government has doubled the amount of lending available to exporters to £3bn as well as cut interest rates to exporters by a third.
Marc continued: “The UK is a strong partner for trade within overseas markets which can provide greater new business opportunities than in the domestic market where demand may be limited. With low-cost communications and improving infrastructure, millions of potential new customers in both large and small markets, in all trade sectors are within reach.
“Export trade is essential for successful business growth as well as to the wider economy but the limiting factor can be the fear of the unknown. Trading within new markets can bring with it new risks, particularly for businesses which are looking to new territories for the first time. Overseas markets often have different trading conditions, unfamiliar practices and unique local customs. Without adequate preparation and protection, exporting can potentially expose businesses to a new world of risks.”
However, support is out there. As UKTI Export Week aims to promote exporting, Atradius has issued its top tips for new exporters:
– Become familiar with political and socio-economic situation as well as local trade customs by developing relationships with foreign embassies, trade bodies and business forums. Your credit insurer is also a huge source of information here.
– Do your groundwork: identify your customers, market size and potential share, and use up-to-date information to do so as market dynamics change frequently.
– Research your customers’ position and credit history in advance and stay alert for warning signs of financial difficulty. Again your credit insurer will be of huge assistance here.
– Set realistic targets and create a contingency plan if you’re not meeting them. Be prepared to alter strategy as things change.
– If you don’t have in-house resource to manage the risks, analyse local trading conditions and collate business intelligence, outsource it.
Atradius sponsors the UK Government’s Export for Prosperity campaign, which profiles markets around the world and unearths opportunities relevant to British businesses right now.
A complete guide to export is available free on the Atradius website, alongside detailed reports on individual countries and sectors, visit www.atradius.co.uk