David Smith, a lecturer and business consultant, talks with Glenn Collins Head of Technical Advisory at ACCA, answering questions on achieving business growth and the challenges of the export market. David will provide practical advice and answer questions that will include:
• Why would any business want to consider exporting when they haven’t done so before?
• How easy is it to consider exporting?
• What should a company do before starting to export?
• What business models are available to conduct export business?
• Where should a company consider exporting to?
• How should a company go about exporting?
• What are the big risks and pitfalls for a new exporter?
• What help is available to an inexperienced exporter?
You can also find additional guidance and support at http://www.bexa.co.uk/. This includes details on how UK Export Finance and KPMG have worked together and produced a short guide to help businesses (see below). It also includes guidance that is available from the British Exporters Association (see below), support available from UK Trade and Industry and UK Export Finance together with HMRC guidance on the procedures businesses should consider when importing or exporting.
The UK Export Finance and KPMG guide is aimed at businesses who might be constrained in developing new markets because of the lack of available export finance and credit insurance. The guide poses the following questions for businesses to consider:
Is there a developing market you want to expand in but you are worried about the political or credit risk?
Do you need to give long credit terms for your export contracts, and would like to obtain payment protection?
Do you have export customers where your credit insurer will not provide cover?
Are you unable to obtain a financing package for the buyer from your bank to support your export offering? Or have working capital needs specific to an export contract that are not being met by your bank?
Do you have to provide contract bonds to guarantee performance?
If so, do you have access to all the bond capacity you need from your bank? Do you need to reduce the cash collateral that your bank requires?
The key message is that both UK Export Finance and UK Trade and Industry are there to support all businesses, large and small, as they look to expand their markets.
The British Exporters Association has a number of useful guides that are publically available on its website. They aim to highlight some of the key areas that businesses need to consider when developing a new market. The guides available are:
• BExA Guide to Letters of Credit after UCP600
• BExA Guide on On-Demand Contract Bonds
• BExA Guide to Successful Exporting
• BExA Guide on Retention of Title Clauses in Export Contracts
• BExA Guide on Export Credit Insurance
• BExA Guide to Financing Exports
• BExA Guide to Export Compliance