Importing may have just got a little trickier, but help is at hand.


With the UK voting for Brexit the inevitable market turmoil followed with the pound sinking to its lowest level against the US dollar for decades. Good news maybe if you’re exporting as your goods just got a bit more competitive. Bad news though if you were planning a summer trip to the Med but failed to buy your Euros on the 23rd June; your cappuccino, petit bier or paella just got a little more expensive.

Not great news either for those businesses which are importing. Although current deals may be based on a currency exchange rate fixed pre-Brexit, the next round of purchases may have a less welcome effect on margins.

Who’s steering the ship?

The slightly less expected consequences of the vote to leave the EU has been the almost farcical situation whereby the incumbent Prime Minister has quit and wants nothing to do with the debris, a Chancellor going into hiding for the following few days and the catalysts of this “seismic” shift appearing to assume that we can carry on with all the good bits and just leave out the less favourable bits such as paying for them and leaving our drawbridge down. And with an opposition in meltdown too, thank goodness for Mark Carney.

For the country’s leaders therefore, it’s obviously hard to implement a plan B when there clearly wasn’t ever a plan A. However, the alternative finance industry stands ready to carry on supporting businesses through tricky times with innovative products, know-how and funding.

Import some expertise

For importers the help can start at the point of receiving an order. With a creditworthy customer and a decent margin involved, immediate payment directly to the seller can be arranged or letters of credit raised. Plugging the cashflow gap is essential and even more so when some goods can be floating on the water for months before producing a return.

Specialist services bring specialist knowledge, and now that the minefield of foreign exchange has been slightly amplified by Brexit uncertainty, having the support of people who are comfortable settling debts in different currencies adds further value to the various import finance options available.

Business goes on even if the government appears to be temporarily comatose and the import finance departments of UK funders are open and eager to support international transactions. With their help, the chances of importers succeeding are infinitely higher than the chances of Mr Farage joining the diplomatic corps any time soon.

By

Steve Leeves