Brexit impact on businesses

When it comes to the challenges which Brexit poses for UK businesses, the most important thing is scenario planning. This will enable you to consider how the potential outcomes could impact you both now and in the future.

Here are our top three tips on what you should consider as part of your scenario planning to ensure a successful transition for your business to a post-Brexit world:

Trade and Export

1. Revisit supplier relationships

If your business is anything like ours, supplier relationships are key. It’s important that you consider how Brexit finance issues are likely to impact your EU and non-EU suppliers.

This may be in relation to the goods and services they provide, and how any changes to tariffs and customs could impact costs and timings.

If you’re importing goods from within the EU, you should ensure you are clear about the rules. The Government has provided a step-by-step guide for businesses importing goods into the UK.


2. Minimise the impact of currency fluctuations

Changes in the global political landscape have impacted currency markets significantly in recent times. For businesses that buy and sell overseas, currency fluctuations can increase input costs and reduce profitability hugely.

It’s therefore important to keep an eye on currency and market fluctuations to protect against such impacts.

Foreign Exchange (FX) providers can help by locking-in rates to protect against further currency movements and ensure stability for your post-Brexit finances.

Find out more about how we can support our clients to mitigate the Brexit impact on businesses with our FX services.

3. Managing your cash flow position

Our own research showed that since the EU Referendum, an increasing number of businesses have been impacted and are struggling to effectively manage their cash flow.

Additionally, we know that more businesses today are suffering from bad debt, due to non-payment from customers.

It’s for these reasons that we have pledged our commitment to the Government’s SME Finance Charter, to ensure that SMEs can access the cashflow solutions they need to support their business through Brexit and beyond. Our commitment to the SME Finance Charter means we subscribe to five pledges:

  • we’re open for business and ready to lend
  • we’ll help you navigate Brexit and beyond
  • we’ll support your application and signpost other options if needed
  • we’ll treat you fairly at all times
  • we’ll work with the government-owned British Business Bank (BBB) to support SMEs

Speak with your finance partner, or one of our specialists teams, about the options available to your business to help alleviate challenges associated with cash flow issues and the  impact of Brexit. This could include specialist import (Trade Finance) and Export Finance services, helping you to trade overseas with confidence.

Additionally, some providers will offer bad debt protection to ensure that your business is insulated against the impact of customer non-payment or protracted default.

Read more about the cash flow solutions we provide, including our support for SMEs trading overseas.

International expansion and Invoice Finance

Reports suggest many UK businesses have considered expanding into Europe in order to mitigate the potential disruption and trade barriers following Brexit.

Bibby Financial Services clients which are expanding into Europe after Brexit will benefit from a consistent approach to funding thanks to our local knowledge and presence in many European locations.

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