In today’s interconnected global economy, businesses are increasingly looking beyond their borders to expand their reach and tap into new markets. Exporting plays a pivotal role in achieving this growth, allowing companies to sell their products or services to customers around the world. However, navigating the complexities of international trade requires strategic planning, financial resources, and risk management. Export finance emerges as a powerful tool to facilitate this process and unlock growth opportunities. In this blog, we delve into the world of export financing, exploring its benefits and how it can boost your international sales.

What is Export Finance?

Export finance encompasses a range of financial tools and mechanisms designed to support businesses engaged in international trade. These tools address various aspects of the export process, from production and shipping to payment collection.

Newable’s Export Finance solution can meet the pre-export financing requirements of a business(ie before the goods/services are delivered to the end buyer) or bridge the gap between production and receipt of payment from the end buyer.

Newable’s Export Finance solution can help cover manufacturing costs, raw material purchases, recruitment fees, training expenses, asset purchases…the list is endless.

What are the benefits of Export Finance?

Export finance offers several advantages to businesses venturing into international markets:

  1. Access to Capital: By securing export finance, you gain access to the necessary funds for production, shipping, and marketing expenses associated with international trade.
  2. Risk Mitigation: Tools, like credit insurance and letters of credit, help mitigate risks related to non-payment by foreign buyers or currency fluctuations and Newable can help you source the right mitigation tools your business needs.
  3. Market Expansion: Export finance enables companies to enter new markets, diversify customer bases, and increase sales opportunities, domestically and internationally.
  4. Competitive Advantage: Businesses that utilise export finance enhance their competitiveness on a global scale. Positioning yourself strategically, can lead to growth and success in international and domestic markets.
  5. Business Growth: With export financing, you can capitalise on global demand, maximize revenue potential and expand your business footprint.

 

At Newable, we specialise in supporting SMEs with their exporting endeavours. We offer flexible working capital to help exporting SMEs capture opportunities and respond swiftly to challenges. Our working capital finance facilities can provide up to £300,000 for exporters. This financial support enables SMEs to win contracts, fulfil orders, and support business growth.

As well as financial support, we also take pride in providing fully funded advice to SMEs as they navigate the ever-evolving landscape of international trade. Our expertise lies in providing guidance on changes, challenges, and opportunities related to exporting. For example, the Electronic Trade Documents Act 2023 was enacted in the UK, promoting the use of electronic trade documents. This act facilitates the adoption of electronic bills of lading in global trade and as more and more countries are implementing similar legislation, cross-industry standards will emerge.  This shift toward digitalisation will enhance product allocation and risk decision-making. The Act is expected to benefit shipping, international trade, and trade finance, leading to lower administrative costs. Here at Newable, we aim to help SMEs navigate this transition and leverage digital processes effectively.

About Newable

For over 4 decades, Newable has been supporting thousands of businesses every year through the provision of MoneyAdvice and Workspace. As an employee-owned business with a commitment to creating positive impact in all that we do, our team are on hand to help your business today.

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