Trading internationally
Tools & Resources
Key learnings
- Trading internationally is a way for businesses to find new markets and materials.
- The international trading system is complex and there are rules for individual countries that you need to be aware of.
- You should seek advice from your local DBT office, Scottish Enterprise, Growth Hub, Chamber of Commerce or export finance manager before trading overseas.
In today’s globalised economy, international trade is something many businesses are actively pursuing. Whether it be sourcing materials from abroad or selling your own products and services in foreign markets, trading overseas boasts many benefits. In this article, we talk through the principles of importing and exporting and include some useful resources to help your business embrace global commerce.
International trade consists of imports and exports and is a key part of the modern business landscape.
Exports are where you sell goods or services to other countries.
Imports are where you receive goods or services from other countries.
Exporting can help businesses of any size develop and expand by reaching larger markets abroad, while importing can help reduce costs and increase profits.
Doing business across borders can be significant because some countries have specific resources that may be scarce where you’re based and therefore can offer them at a reduced price.
International trade improves choice for businesses as well as consumers to make for a more diverse and competitive marketplace.
Here are some of the benefits of importing and exporting for your business:
Benefits of exporting
- Done correctly, exporting products can increase sales in general.
- Businesses that have launched their products successfully both regionally and nationally can begin to share their vision globally.
- Beginning to export opens up opportunities for overseas manufacturing and franchising.
Benefits of importing
- Importing goods that aren't readily available in the UK market allows consumers to have more choice.
- Importing new products allows UK businesses to keep up with worldwide product trends and satisfy growing customer demands.
- Importing ready-made goods can reduce the costs of manufacturing bills.
- Importing can boost the profitability of your business.
*It might be worth sending a member of the team to inspect the quality of goods that you intend to import. Your businesses reputation will depend on the quality of the products that you sell.
International trading resources
The following schemes and resources are currently available to assist viable businesses who wish to import and export:
1
UK Export Finance
UK Export Finance (UKEF) is the UK’s export credit agency. It is like a government bank or insurer specifically for exports. Its ambition is to make sure no viable export from the UK should fail for want of finance or insurance from the private sector.
UKEF helps firms of all sizes access the finance and insurance needed to realise their export ambitions through:
- Free and independent guidance on sources of export finance
- The release of working capital with bank guarantees for contract bond or credit facilities
- Security of payment with export credit insurance
- Competitive finance for overseas buyers with buyer credit guarantees or direct loans
The amounts and term of support available depends on the risk involved. UKEF works with exporters, project sponsors, banks and buyers.
Find out more here.
Find an Export Finance Manager here.
2
Department for Business and Trade (DBT)
DBT is the government department for business and trade.
It provides advice and support via a range of services and programmes, including face to face meetings with Trade Advisers, events, trade fairs and webinars, help for travel on overseas missions, and a graduate placement scheme to support export projects.
Find your regional DBT office here
3
Scottish Enterprise
Scottish Enterprise focuses on activities that help Scottish businesses to adapt and better respond to economic opportunities and challenges.
Its goal is to create a more productive, resilient and competitive economy for Scotland.
It provides support to new and existing exporters, including research and training services to help you investigate opportunities and prepare you for exporting for the first time or into a new market.
Find out more about Scottish Enterprise's export services here.
4
Growth Hubs
Growth Hubs are local and private sector partnerships often led by Combined Authorities and Local Councils.
They provide a mechanism for integrating national and local business support, so it is easier for businesses to access the help and advice they need to thrive and grow.
It is worth contacting your local Growth Hub to find out if they can assist with exporting and the associated funding.
Find your local Growth Hub here.
5
UMi Loan Finder
Review, compare and apply for funding using the UMi Loan Finder.
Powered by Swoop, this tool is built to give you access to the funding and money-saving products your business needs to start trading internationally.
Find out more and sign up here.
Next steps...
- Research the export markets that you’d like to trade with before committing business resources to them.
- Read UMi’s guide to exporting from the UK.
- Put together a costing strategy for importing and see how it compares with your current business model. This GOV.UK tool can help.
- Ensure you have cashflow flexibility to send and receive money from outside the UK as typically wait times for payment can be longer.
- If you need support with getting started in export, visit the GREAT website for businesses in Great Britain and Northern Ireland, and Scottish Enterprise for businesses in Scotland.