UK Export Growth Is Picking Up. Is Your International Treasury Ready?

Your Incoming Currency May Already Match Your Outgoing Costs

A business receiving USD may also have expenses in the same currency. For example, a UK company could receive $100,000 from a US customer and later need $40,000 to pay an American supplier. Converting the full amount into GBP and then buying dollars again could mean an unnecessary extra conversion and additional cost.

Holding some of the USD instead can make the payment flow simpler. This is one reason a multi-currency account can be useful as part of an international treasury setup. The right approach depends on the business's cash needs, currency exposure and the costs involved in holding or converting foreign currency.

Export Growth Can Put Pressure On Working Capital

International growth does not always mean cash arrives faster.

A business may have to buy materials, produce goods, pay staff and cover shipping costs before an overseas customer settles an invoice. Larger orders can therefore create a bigger gap between spending money and receiving it.

UK Export Finance specifically notes that export activity can put pressure on working capital. Its working-capital schemes are designed to help eligible exporters access trade finance when they need cash to fulfil larger or additional export orders. 

UKEF's General Export Facility can also support eligible UK exporters with trade finance facilities, including cash facilities and bonding or letter-of-credit lines. The facility can support trade finance of up to £25 million, subject to the relevant terms and eligibility.

The lesson is simple: export growth needs cash behind it.

A business can have strong orders on paper and still face pressure if too much money is tied up before customers pay.

Cash Visibility Becomes More Important As You Grow

Small businesses can often manage cash by checking one or two bank accounts. That becomes harder as international sales grow, with finance teams needing to monitor several accounts, compare balances, track incoming payments and see how much money is available in each currency.