How to solve your cash flow gap

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5 December 2018

Marta Alvarez

Global Marketing Executive

UK SMEs consider cash flow gaps as one of the top five challenges> they face as a growing business.

These gaps can typically occur when the timing of your company’s outgoings are misaligned with your income. For example, when you (as a buyer) purchase goods from an international supplier, there’s a significant period of time until they arrive. While they’re in transit, the goods can’t be sold, resulting in a cash flow gap.

While it is common for SMEs to experience cash flow gaps, it’s essential that you get it under control sooner rather than later. If not, problems can range from not being able to take advantage of potential growth opportunities to not having spare funds available for new opportunities. Taking care of your cash flow helps increase the stability of your business’ future.

strong>What are the benefits of improving your cash flow?

Getting your cash flow under control has many benefits for a growing company. When surveyed:

  • 33% of SME business owners stated that they would invest in more equipment

  • 28% stated they’d expand operations (by exporting into new markets or opening new locations)

  • 10% stated they’d invest back in their employees

How do you do it?

The answer is Trade Finance>. It’s a form of short-term credit that’s typically used by companies importing or exporting goods that have a strong trading record, or are backed by an insurance company.

How does it work?

1. You (the buyer) make an order with your international supplier
2. The supplier confirms the order and sends you the invoice for the goods
3. You forward the invoice to Ebury, and Ebury pays the supplier directly when the funds are due
4. You receive the goods and start selling to customers
5. You repay Ebury within a period of 150 days

, *Pullout* Interested in finding out what we can do for you? Contact one of our representatives to start a conversation.

Why work with us?

Our import lending solution gives you the flexibility to finance international purchases, so you never miss an opportunity to grow your business. Not only do we provide the finance, but we can also send your supplier the payment, quickly and securely, in their local currency, which can often result in a discount and preferred terms.

With our services, you get:

The personal touch: Get your very own dedicated Relationship Manager who can answer any questions you have and can provide valuable advice

Pay as you go: Only accrue interest once you’ve used the credit line. No use = no cost

Ease of use: Access our simple and transparent platform to make and track international payments

Enhanced supplier relationships: Pay your suppliers earlier

Here at Ebury, there are three things we look for when we talk to new clients looking to use our trade finance services. These are:

£1m annual turnover
A minimum period of two years trading history
£100k in net assets

If you’re interested in our trade finance services, contact us to speak to one of representatives.

To find out more about other services we can offer you, look at the solutions on our website.