As the referendum result sinks in, the trading environment has become uncertain and markets may again become volatile. However there are opportunities out there for shrewd exporters as Coface’s Andy Richards explains.
Coface UK Commercial & Marketing Director
Entrepreneurs never stand still and despite the uncertain environment you will want your business to realise its full potential. An exporters approach will be to take advantage of the lower value of sterling and meet increased overseas demand for products or services. However with reward comes risk, so how should you steer your export strategy?
Information is your greatest asset when the trading environment is so uncertain. A market which is viable and stable today may become financially weak tomorrow. In addition to this the fall in the value of the sterling will make goods and services more affordable in markets beyond Europe – which to date have been relatively untapped.
To help, Coface produces regular country risk reports evaluating the average credit risk of companies in a given country. This enables companies to manage their business away from high risk markets and concentrate their efforts on strong, secure markets.
Amid the excitement of new customers and increased orders from existing customers companies don’t always consider the risk they are taking. Does your new customer have the financial strength to support their marketing pitch? Is an existing customer still credit worthy and trading profitably? What would the impact of a bad debt be?
The implication of growing a customer base, receiving a large order, or just taking a chance on a new export market increases your financial exposure to non-payment or insolvency.
ADVISE, GUIDE, PROTECT
Coface has Business Information and Credit Opinions on 65 million companies worldwide so wherever in the world your clients are trading we can offer you guidance as to the risk you are taking.
However credit insurance is an equally important part of the equation. If the worst happens and non –payment occurs credit insurance will replace the cash.
Coface has years of experience in helping companies trade safely and with the right protection and information, UK businesses can manage the uncertainty and compete and export successfully in the global market place.