In this Q&A session, we sit down with Karen Greenwood, the Head of Underwriting at Newable Commerce. With her extensive experience and deep understanding of export finance, Karen shares valuable perspectives on how Newable Commerce supports SMEs in their export journeys. She addresses common misconceptions about export finance and explains how Newable Commerce tackles these challenges. Additionally, Karen highlights emerging trends in the field, offering a glimpse into the future of export finance. Join us as we delve into Karen’s expertise and discover how Newable Commerce is making a difference for SMEs.
Tell us a bit about your background and your role here at Newable?
I joined Newable three and a half years ago, right as Covid-19 lockdown restrictions were ending and businesses were beginning to trade again. Before joining Newable, I was the Head of Trade & International at Bibby and GE Commercial Finance. At the time of my arrival, Newable Business Loans was just about to start lending again under the Recovery Loan Scheme, whilst work was ongoing on securing UKEF accreditation. Subsequent to the UKEF accreditation, we’ve worked across the business to increase the range of funding products available to SME exporters.
How does Newable Commerce simplify international trade for SMEs?
Newable Commerce simplifies international trade for SMEs, in particular those with revenues under £10 million, by offering tailored funding solutions specifically designed for businesses that struggle to secure finance through traditional lenders. This is often due to their high level of export sales or because they are considered too small to support. Newable Commerce not only provides the necessary funding but also offers support and expertise, enabling businesses to export with confidence and seize growth opportunities without being hindered by financial constraints.
What specific products and services does Newable Commerce offer to help businesses move and manage funds internationally?
In addition to our cashflow solutions, Newable Commerce have partnered with Currency Cloud by Visa, to enable our clients to access foreign currency services easily and simply.
What are some common misconceptions about export finance that you’ve encountered?
One of the most common misconceptions about export finance is that exporting SMEs are too high a risk to support due to their smaller size and perceived lack of resources to meet the stringent requirements of many overseas markets. Another prevalent misconception is that there is no assistance available to help businesses navigate the operational and financial challenges they may encounter when exporting for the first time or expanding their presence in an international market.
How does Newable Commerce address these misconceptions?
In order to export, a business must fulfil and maintain a number of operational steps in order to be able to deliver goods and services into an overseas market. The Newable Commerce team admire the ambition many SMEs have in wanting to diversify their customer base and markets, the expertise they have accrued and their growth desires.
Newable Commerce is here to support with addressing the financial challenges SMEs face in exporting to new markets and we have a network of international trade advisors, export finance managers, as well as ancillary service providers that we can connect clients to, to help them address the operational risk in a transaction and achieve their exporting ambitions.
How do you approach risk when underwriting SMEs?
At Newable Commerce, our approach to risk when underwriting SMEs is centred on understanding. Unlike many lenders, we don’t rely on algorithms. Instead, our team takes the time to discuss and comprehend what each client aims to achieve. We then structure a tailored solution that not only meets the client’s goals but also aligns with our credit requirements. This personalised approach ensures that we can support SMEs effectively while managing risk appropriately.
How has the landscape of export finance changed over the past few years, and how has Newable Commerce adapted to these changes?
The landscape of export finance has undergone significant changes over the past few years, with Brexit being one of the most impactful events. Brexit has introduced both challenges and opportunities for businesses. Additionally, the continued growth of eCommerce has transformed the exporting landscape. Many businesses now receive orders from overseas buyers through their websites without even realising these are export sales. The convenience of sending goods via courier from a local post office has effectively made the world a much smaller place.
Newable Commerce has adapted to these changes by staying attuned to the evolving needs of SMEs. We provide tailored support and funding solutions that help businesses navigate the complexities of exporting in this new environment. Our team of advisors, export finance managers, and ancillary service providers work closely with clients to address both operational and financial challenges, ensuring they can seize new opportunities with confidence.
What emerging trends do you foresee in the export finance industry?
In the export finance industry, several emerging trends are poised to reshape how businesses operate. The adoption of Electronic Trade Documents, the Carbon Border Adjustment Mechanism (CBAM), and the Target Border Operation Model are all significant developments. These changes will drive businesses to gain a deeper understanding of their carbon emissions, potentially leading to alterations in operational processes or even the invention and redesign of products to meet specific country requirements, both within and outside of Europe.
Additionally, the “Made in Britain” label continues to hold significant value, as the UK leads the world in design and engineering. This reputation helps global enterprises address the changes brought about by CBAM and the push towards net-carbon zero, reinforcing the importance of sustainable and innovative practices in the export finance landscape.
How does Newable Commerce collaborate with other financial institutions and partners to support SMEs?
Many of Newable Commerce cashflow solutions are designed to work alongside existing funding arrangements, providing the working capital needed to support growth.
Can you share an example of a successful client relationship where Newable Commerce made a significant impact?
Many of our clients have become UK Export Finance Export Champions after we helped them achieve significant overseas sales growth. These clients are now encouraging other SMEs to follow in their exporting footsteps.
For example, Newable Commerce has provided resources to support the operational processes of exporting SMEs. We have assisted with recruitment and training costs for their workforce, offered surety of finance to enable the winning of new contracts, and provided working capital to develop new products that have been successfully sold in new markets. Additionally, we have supported service companies by leveraging the expertise of their UK employees for overseas projects. This comprehensive support has made a significant impact on our clients’ ability to grow and succeed in international markets.
Newable Commerce is dedicated to empowering SMEs to navigate the complexities of international trade with confidence. By providing tailored funding solutions, expert advice, and comprehensive support, we help businesses overcome financial and operational challenges, seize growth opportunities, and achieve their exporting ambitions. As the landscape of export finance continues to evolve, Newable Commerce remains committed to adapting and leading the way, ensuring that SMEs can thrive in the global market.