Selling abroad is an important way businesses can achieve growth and sustained exporting success can increase turnover, bring economies of scale and improve competitiveness. Yet, according to a survey by the Credit Management Research Centre, which is a member of the BPPG, only a third of companies reported increased exports in 2003. The survey found that many small and medium sized firms are deterred from trading with companies abroad because of concerns about payment periods, chasing invoices and bad debt.

To minimise exposure to late payment, the BPPG recommends that businesses seek specialist advice. Marcel Landau, BPPG member and Vice Chairman of the Institute of Export, commented: “Exporting can be a good way to build business, but, as with all new customers, companies should research export clients and check their creditworthiness before taking them on. There are a number of resources available which provide details on the cultures and payment practices of other countries, lists of trade events overseas and data on the risk of exporting to particular regions. Armed with this information, businesses are in a better position to weigh up the advantages and disadvantages of entering new markets before they begin trading.”

The BPPG’s exporter section, which provides useful information and links to a number of external organisations, can be found by clicking here.

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