Understanding import risks
What to think about when you’re planning to importContact us
Working with partners abroad isn’t always as straightforward as working with UK businesses – risks around cash flow and payment are key concerns.
Knowing every detail about your costs and cash flow cycle is vital. You should carefully research all associated costs that come from taxes and other charges. Be clear on payment terms and understand the specifics of your deliveries. Getting this balance right will help towards successful importing.
Don’t forget about exchange rates – they change all the time and they can have a significant effect on the price you’re paying for overseas goods.
You could choose to pay only in sterling but this may lead to higher prices, as your supplier may want to protect themselves from their own currency risks. Alternatively, you could open a foreign currency account, which could make it easier to work with suppliers.
Take the time to understand what works best for your business before you go any further.
Product Fees may apply
Make sure that any contract between you and your supplier sets out who’s responsible for transport and insurance at every stage. A clear agreement that uses internationally accepted trading terms to set out the agreed delivery terms will help to reduce any risk of confusion. These terms are known as Incoterms®.
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Please contact your relationship manager.