In line with EnableFinance.com, UK Small to Medium Sized Enterprises are generally failing to capitalise on the weakness of the pound to be able to export their particular products or services, as a consequence of fears over how late payments from international partners could possibly effect their own cashflow.

The alert comes after information released from the Office of National Statistics past month, which unfortunately indicated that the actual trade shortfall in products or services, grew in December to its highest level since August 2005. This suggests that most companies are actually much less keen to work outside the UK.

The weakened pound has made United kingdom goods less pricey to overseas marketplaces owing to the economic downturn in recent years, presenting notable development possibilities for UK businesses with the methods to export.
Even so, according to EnableFinance.com, concerns around bad debt from international partners along with the management pressure in attempting to get hold of late payments from international creditors are fuelling SMEs’ desire not to export.

Phillip Evans, managing director at EnableFinance.com, said: “Late payments adversely effect SMEs’ cash flow and might create hurdles to company growth. The problem continues to be enhanced by the downturn with more and more providers struggling to pay their creditors.

“Taking into account the difficulties many companies experience with national accounts, worries around delayed payments are generally heightened when the consumers are based in another country. Those responsible for credit control or business debt management commonly deal with the additional pressure of having to get over language barriers or coordinate working hours in various time zones.”

EnableFinance.com is urging companies to think about using invoice finance and credit insurance products, similar to invoice discounting. This will give businesses to draw down funds on their produced B2b invoices and commonly include accounting elements in which the service provider of your facility queries unpaid invoices with the actual debtor on the particular customer’s behalf – although they’re based foreign. Invoice finance also bridges the space between the goods being sold, supplied overseas and payment actually obtained, permitting | enabling | making it possible for | letting | allowing for businesses to trade offshore with the certainty their particular working capital will never be damaged.

Debtor insurance coverage, an insurance plan organized by EnableFinance.com, in addition gives safeguards against both domestic and overseas debtors.

EnableFinance.com, said: “Credit insurance gives companies the assurance to exploit worldwide demand and develop abroad, secure in the knowledge that they’re protected in case a client should be unable to pay its invoices by the due date or, in extraordinary instances, files for liquidation.

“In the current economic climate, United kingdom SMEs could realise sizeable growth in new foreign markets and should not be discouraged by payment worries. However, we would advise all companies to look at their cashflow position when beginning to export and consider debtor insurance as a safety net should the worst happen.”

EnableFinance.com provide business finance to UK businesses re:IF07ap11x

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