The findings of the Institute of Export’s 2015 International Trade Survey have just been published. The report makes fascinating reading, particularly in respect of the key issues and inherent complexities related to funding international trade.
Of the 55% of respondents who identified obstacles to trading internationally, 14% highlighted that finance was a major issue, second only to compliance with local regulations (20%).
Key areas such as insufficient information about payment methods, costs of getting paid amongst early stage businesses, inadequate financial planning, a lack of understanding of extended working capital required for international trade and insufficient price planning – which significantly affects desired profits – also featured prominently within the report.
The director general of the Institute of Export, Lesley Batchelor OBE, commented on the survey in a video on YouTube, commenting that“33% of respondents saw finance as a key obstacle to developing overseas markets” and stressing the need for exporters to “understand that it takes a long time to collect money and it’s not going to be a 30 day turnaround.”
Toby Lanyon – COO of TradeRiver adds:
“The findings of the 2015 IOE Export Survey are very revealing. This shows incontrovertible evidence of a need for greater education amongst those actively involved in international trade on the real commercial advantages of the financial and support programmes currently available to them from non-bank sources. This educational remit is a responsibility that TradeRiver takes very seriously. To this end, we have published an explanatory guide for exporters, ‘Redefining Trade Finance’, designed specifically to meet their information requirements regarding this fresh approach to trade finance.”
He continued: “The document shows how by trading with a buyer on TradeRiver’s secure online platform, exporters are able to generate more cash sales and expand their customer base. This new brochure emphasises the fact that with TradeRiver, 100% settlement is made in the exporters preferred currency on approval of the goods, so there are none of the payment delays such as those flagged up by the director general.”
Download your priority copy of ‘Redefining Trade Finance’, addressing the information needs of exporters, so you can see for yourself how the TradeRiver solution transforms cross-border transactions.