Firms Gear Up For Christmas Now
With 9 weeks to go until Christmas, many businesses across the UK are experiencing a rush of orders which must be fulfilled before 25th December. Importers, in particular, may be facing pressure to guarantee that goods from around the world arrive in UK warehouses in good time.
Despite the negativity surrounding the trade deficit and depreciation of the pound, UK importers have had a better year, with recent figures from HM Revenue & Customs showing a 31 per cent increase year-on-year. In August 2010, the total value of trade-in-goods imported to the UK from countries outside the EU was £14.4 billion whereas in August 2009 it was £11 billion. This increase reveals that consumer confidence in the UK is strengthening and means that it is of paramount importance that importers have their finances in place if they are to take advantage of opportunities, at home and abroad
As the last few weeks of the year can be a period of frenzied activity for many small and medium-sized businesses, it is vital that owners and managers review their finances now rather than leave it to the last minute. A healthy cash flow will enable companies to fulfil orders and fund crucial business activities around this time of year such as marketing, additional staff costs and even end-of-year bonuses.
One way in which firms can gear up for Christmas is to explore more flexible funding options such as the international trade finance package provided by Bibby Financial Services that can grow as a business expands. These packages can provide upfront funding against confirmed customer orders, as well as releasing cash tied up in outstanding customer invoices, therefore providing an ongoing source of cash that is directly linked to sales, something that is vital during seasonal peaks in activity.
International trade finance facilities can provider a viable solution to the cash flow difficulties faced by many companies looking to import goods in advance of receiving customer payment. It enables businesses to secure new orders with the confidence that they have the necessary finance in place to balance paying suppliers upfront, while offering credit terms to customers.
Many providers offer added-value services as well which means that they are much more than just a source of funds – for example, Bibby Financial Services’ International Trade Finance facility has a comprehensive credit management and collections service that allows owners and managers to save valuable time that can, all too easily, get consumed when chasing for late payment. In addition, as part of our international trade finance product, we offer expert support across key areas such as logistics, import licences, customs compliance, VAT, duty and freight costs plus specialist bad debt protection which ensures payment even in the unfortunate event of a customer’s insolvency or inability to pay.
International Trade Finance facilities can also combat the difficulties encountered when liaising with international accounts departments as the provider takes on the responsibility for collecting customer payments using its in-house, multilingual team.
Companies cannot afford to bury their heads in the sand as the Christmas countdown commences. Maintaining a healthy cash flow is often the difference between business success and failure and is no mean feat when Christmas orders rush in and stock must be readily purchased.”
While many traditional providers of funding are reducing their support for small and medium-sized businesses, Bibby Financial Services is very much open for business and our International Trade Finance team has recently reported a 10 per cent increase in its client base. We hope this growth in our business is a reflection of improved circumstances for businesses across the UK.
Posted on 19 October 2010