Tint helps businesses unlock cash flow to fuel growth in cross-border trade. ‘We see clients increase trade activity by, on average, 25%’
More than 300,000 UK SMEs buy or sell internationally, but because most suppliers (exporters) need to be paid before the end customer (importer) pays, SMEs find themselves significantly cash constrained. By accessing trade finance, SMEs can fund these cross-border trades with new finance, and so realise their growth potential.
“Cross-border trade is more complex than domestic trade, and SMEs have relatively few options to fund it. Efficient funding is for the whole transit period – from when the goods are dockside to when the end customer pays – and only charges for the period the goods are in transit” Steve Rose, CEO of Tint Financial Services explains.
“Funders need security over goods being traded before giving finance – that security must work with your existing banking. You will need to provide information for legal checks (Know Your Customer – KYC). The best providers make KYC smooth and use the information to make the overall trade easier.
“International trade is undergoing enormous change. The passing of the Electronic Trade Documents Act (ETDA) should streamline international trade significantly, and over the next year or two, SMEs can expect to see more opportunities for growth. As well as opportunities, an increase in activity will bring new competition to your doorstep – so it’s best to get prepared.”
3 WAYS FOR SMEs TO MAXIMISE CROSS-BORDER TRADING
Get help with finance One of the biggest barriers to smaller businesses expanding into export trade is the prohibitive costs. Cashflow can be a constraint – particularly when suppliers need paying before the consumer pays. Using a trade finance company to fund your international endeavours (as well as dealing with insurance and logistics) can help your company grow and thrive.
Localise the customer experience Seek to understand buying behaviour in different countries and allow your customers to pay in their local currency and through local payment methods. Plus, it’s important to offer appealing shipping costs and returns policies. Customers want choice in their payment methods and could abandon their carts if you don’t meet their expectations.
Do a health check Make sure you have appropriate insurance cover. Insurance can be the last thing you think of when navigating the complexities of cross border trade. Market commentators quote under-insurance rates of around 40%. Make sure you don’t get caught out by talking to a specialist broker experienced in international trade.
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