Partner Article

How British manufacturers can trade overseas without risk

It’s manufacturing focus week on Bdaily, and we’re looking at the debate around the UK sector. Here, Rocco Magno from American Express writes about overseas trade from UK manufacturers, and how to avoid taking risks.

The global economy is in a constant state of flux, with sterling recently falling to its lowest level for nearly three years against the dollar. For British manufacturers, this changing environment poses both challenges and opportunities. While the declining value of sterling leads to the import of goods becoming more expensive, it also makes manufactured British goods more attractive in the global market and could lead to an increase in exports.

In this time of uncertainty, manufacturers need to look at their international payment strategies to ensure they can either take advantage of, or protect themselves from the weak pound. By addressing issues surrounding international payments, manufacturers can take advantage of opportunities to increase revenue and avoid losing money due to currency fluctuations.

Take precautions

A reliable payment solution is a key foundation to a global expansion strategy. All international payments are subject to currency fluctuations, but by taking measures to limit your exposure to movements in the market, you can minimise the risk of losing money unnecessarily.

No matter the size of your manufacturing business or the markets in which you are trading, there are tools available to help you trade internationally. But with so many products on the market, choosing the right payments solution can be a complicated decision. To help you navigate this complex environment, American Express International Payments has some helpful advice:

• Protect yourself: Securing exchange rates for set periods of time enables you to have control over payments, protecting you from currency fluctuations. Purchasing forward contracts locks in your payments, meaning that what you agree to pay will remain the same regardless of the currency rate when the payment is due.

• Maintain focus: Making international payments isn’t the same as being an FX trader. You should be aiming to make a secure, efficient transaction that benefits both parties. Don’t fall into the trap of trying to chase potential FX profits which can incur hidden costs and carry extra risks

• Get the best information: When it comes to making foreign payments, knowledge is power. Currency rates can change quickly, so having up to date information is vital when making payments. Online international payments tools provide real-time currency updates and enable you to exchange money instantly with the confidence that the rates you are trading in are accurate. These tools will also allow you to automate your payment instructions for regular payments, minimising the risk of human error which can waste both time and money

• Call in the professionals: Trading internationally is a complex business, but there is a wealth of expertise available to help you navigate the world of cross-border payments. By working with professional payments specialists like American Express International Payments, you can be confident in your payments strategy and concentrate on growing your business and expanding into new markets.“

For more from Bdaily’s manufacturing focus week see these articles: Manufacturing focus: Fascia Graphics; Manufacturing focus should be UK consumed goods; Manufacturing focus: UK Point of Sale; North West success story in a global market;Tatty Devine talks jewellery and micro-manufacturing with Bdaily;Manufacturing is not dead; and You think UK manufacturing is dead? Think again.

This was posted in Bdaily's Members' News section by Rocco Magno .