What are the main barriers to exporting and why?
The two common issues to exporting internationally are lack of finance – as suppliers can have no money coming in for up to 90 days – and certainty of payment. It is difficult to know the different laws in different countries, which can cause issues for chasing overseas customers and can result in working only on trust.
Why are traditional ways of funding exports not effective?
URICA believes traditional ways of funding, such as banks, overdrafts, loans or credit cards create debt, which puts pressure on the balance sheet and creates liability. Suppliers face an uphill battle; big businesses want long and extended payment terms, often paying out at 90 days so they can grow their business. This means small suppliers struggle for 90 days with no payment and, with debt in the supply chain, businesses can’t grow.
If you get paid on day one as opposed to day 60, this allows funds to be invested into growth channels for your business more quickly, which will have a positive impact. In addition, traditional ways of funding can be very slow, with long procedures.
How does URICA help export businesses?
URICA is different because we use credit insurance through our partner firm Euler Hermes and we cover 50 countries. We accelerate invoice payments which allows payment to be made on day one and that payment is insured. When URICA makes an accelerated payment we will not ask for the money back which is very different to many other finance providers in the market. Further ways we help export businesses is through providing extended credit for up to 120 days, funding 100% of the invoice and only charging one fee.
What is the one unique benefit URICA brings to exporters?
It is hard to choose one! For exporters, certainty of payment and the insurance wrapped around that is what makes URICA unique. There are other alternative finance businesses doing something similar to URICA, but they don’t have that credit insurance partner. Together, we leverage big data to be able to measure risks more accurately and make very informed financing decisions.
To find out more about the ways URICA can help your export business, please get in touch on 0207 193 7616.
About Pippa Greenwood
Pippa heads up the UK Trade at URICA and works closely with a number of exporting businesses which has allowed her to learn about export challenges first-hand. Connect with her on LinkedIn.