Trading internationally …and how we can help!

Britain's worst tourist attraction…

What's in it for you?

What will we cover… Risks – Buyer/Supplier/Bank/Cash flow. Negotiating payment terms. Funding – UKEF (Government body to support export finance) Debbie/Sonia So what shall we be covering today? We shall start by looking at why businesses look to trade Internationally - and we shall look at this from both an Importer and Exporters point of view We shall then move onto what the key markets are for an importer and exporter and in this section we will touch on the main products that companies in the UK import and export We shall then move onto the risk side of International trading – so obviously trading overseas can be perceived as riskier than if a company is just trading solely in the UK - so what do companies really need to be aware of when doing business with companies located in different countries and the types of payment instruments they could perhaps use to help mitigate some of those risks – we will look at these in detail We will then look at the ICM side of International proposition and I will take you through the 5 key areas for consideration Then onto the Trade Finance side and how trade deals can be funded, what’s on offer and how these solutions can really assist in bridging any funding gaps that may arise from International trading And Finally – are we asking the customer the right questions to fully understand their business and in the right circumstances are we asking the relevant International questions ? We will provide you with some key questions here and some pointers to assist you. We will also highlight what support you have available to you and the next steps So a lot to pack into this mornings session! Please make it as interactive as possible and most of all enjoy it! Support services from Department of International Trade.

Importing

Supplier risk…

Supplier risk…

Improving profitability £10,000 Prompt payment discount = £250 Bank cost = £125 Reduced cost/ additional profit = £125 Information classification: Internal

Exporting

Getting paid…..

Mitigating risk.

Helping to chase debt.

Helping to win business.

Foreign Exchange

What’s the risk? €1000 sales order. Today: €1.13 £884 180 days: €1.29 £775 = £109 less profit

Funding

Trade Finance Funding Funding GAP Order Goods Shipped Goods Arrive Manufacture/stock turn Goods shipped to buyer Goods received by buyer Day 1 Day 200 Supplier payment Payment from buyer Funding GAP How we can help?.... Offering a Guarantee of Payment Discounting Guarantees/ Promise to Pay Extend payables Advance receivables Offering Advance Payment Guarantees Trade loan to bridge funding GAP. Subject to Credit approval

Plugging your working capital gap

Bank security? Trade loan/Import letters of credit Advance payment Guarantee/ Performance bond. No credit line Export LC/ Collections

UK Export Finance

UKEF Schemes Bond support Working capital Insurance

What's new for UKEF 2018? Now support UK suppliers to UK exporters. Faster approvals Support more businesses!!!

Summary Bank is here to help! Help with risk/negotiation. Lots of new ways to support with funding. Hand through to partners.

Thank you!

www.great.gov.uk ITA – market & sector specific related knowledge and skills Enterprise Europe Network, CBBC, BABC, Asia Specific & Tony Brown! Export Savvy – offers highly practical short courses and individual modules in a whole range of topics that are designed to challenge you and your business and get you quickly up to speed: Explore how export might benefit you, Get your business in the best shape for export growth, Challenge and improve current performance. A module takes about 15 minutes plus thinking time. Every time you complete a module a short interactive section helps you identify actions and decisions. Speak to an ITA to obtain a code! E-exporting programme - UKTI’s E-Exporting Programme helps UK companies who are: new to selling online, already selling online, but need help with specific issues , experienced in online sales, but are looking to sell on multiple platforms globally Export Finance and Insurance Website Internationalisation Review - £595 no VAT

Find a buyer… The content of this document is classified as INTERNAL 05/12/2018 26

Export Opportunities… The content of this document is classified as INTERNAL 05/12/2018 27

Contact us for further information: +44 (0)333 320 0392 | info@tradenw.org | www.great.gov.uk