international 13
Export successfully with award- winning support
Businesses are looking to increase their focus on export markets, but they can face significant barriers. NatWest has been supporting exporters for many years and its expertise has recently been recognised with two major awards
The UK’s surprise GDP contraction in the last quarter of 2010 was a reminder that domestic demand is still subdued and that recovery may yet be patchy. Little surprise then that astute companies are looking further afield to meet their growth targets. The IMF’s World Economic Outlook update in January 2011 reported a “two-speed recovery“, with advanced economies expected to grow just 2.5% in 2011, compared to an aggregate 6.5% growth figure for emerging and developing economies. Within the BRIC (Brazil, Russia, India and China) countries, China and India stand out with IMF growth predictions of 10.3% and 9.7%, respectively. And with sterling at exchange rates still well below pre-recessionary levels, British exporters have gained a competitive edge.
However the strength of the economic argument does not necessarily make exporting any easier for businesses, especially at a time when many remain understandably cautious; keen to keep costs firmly under control rather than risk scarce cash on new ventures. Add to this, the current unrest in the Middle East further highlighting the risks of entering new markets, and many SMEs may find the comparative certainties of domestic markets more attractive.
So, how do you overcome the obstacles and choose the right market to target? How do you negotiate the regulatory, logistical, cultural and financial framework?
International expertise – a local perspective
NatWest’s corporate and commercial team in Reading has been helping businesses to find the best solutions to these challenges for many years. Neil Bellamy, NatWest’s director of commercial banking in the region, explains: “A key aspect of our role is helping and guiding local companies to facilitate their international business.“ The team includes trade specialist Carl Wood, who has been working with Thames Valley companies for over 10 years and the international trade arena for the past 16 years. “We can help businesses to better understand the markets they are looking to sell into and leverage bank finance to help them take advantage of the opportunities“, adds Wood, international director, global transaction services at NatWest Reading.
One business in the region that has benefitted from the team’s expertise is Reading-based Wessington Group, a
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – APRIL 2011
Carl Wood, international director, global transaction services
specialist chemical and sealant supplier with export markets in the Gulf, Near East, India and the Americas. Managing director Jim Norman originally met with NatWest 10 years ago to discuss overdraft facilities. However, as Wood explains: “By taking the time to really understand the business and conduct an in- depth analysis we saw the potential of trade finance solutions such as bills of exchange to help Wessington improve cashflow and mitigate risk.“ As a result, over the past 10 years NatWest’s Reading office has played a key role in helping Wessington to grow sales, generate more profit and further develop its export business.
“In many ways trade solutions are simply about managing the risks inherent in any trade environment, albeit with the added complication of different currencies, cultures and regulatory frameworks.“ explains Wood. With current events in the Middle East highlighting the changing nature of risks, he believes that the range and flexibility of trade finance solutions is a major positive. “For UK exporters, ensuring certainty of payment for goods or services delivered is vital and that’s where we can help. That could mean reverting to more traditional tools of international trade such as letters of credit, bonds or export collections. These methods of payment can help to mitigate country and overseas bank risks, providing an extra level of comfort for UK exporters,“ adds Wood.
Recognition for our commitment to customers
It is this range of products, deep levels of expertise and commitment to customers that saw NatWest/ RBS win two major awards recently. “We topped the Euromoney 2011 Survey for the UK’s Best Trade Finance Provider, which was especially pleasing
as the award is based solely on the opinions of customers. We were also named Best Bank for Trade Finance in the UK by Global Finance magazine.“
Welcome though they are, the real value of these awards is that they validate the effort NatWest has put into giving customers greater confidence in seeking out, and capitalising on, export opportunities. This included a partnership with UK Trade & Investment (UKTI) for its Asia Task Force programme, which brings together experts from business, education and government to help British companies win a bigger share of key markets. As part of this programme, NatWest sponsored the ’Doing Business in Asia: Meet the Experts’ events around the UK in 2010 and 2011. Within the Thames Valley, the forthcoming ’Doing Business Abroad’ events, again in partnership with UKTI, will allow local companies to access the insight they need to build exports.
A bank with scale and reach
While individual relationships are key to understanding your business objectives and finding the best tailor-made solutions, having a bank with the scale and reach to provide global resources in both your home and overseas markets is also important. RBS/NatWest has a presence in 37 countries providing local expertise and partner bank arrangements in another 22; its network footprint covers over 90% of global trade flows and it is one of the top five banks in the world offering international transaction banking.
Secure online platforms are becoming increasingly important and will enable you to view your overseas accounts and make international payments in sterling or foreign currencies at the same time as managing your UK accounts. Trade finance, letters of credit, bonds, guarantees and collections can also be managed online. However, having client service teams available on the ground to provide local language support and deal with any problems is also important, and NatWest is in a position to offer both.
International, domestic and regional, NatWest can offer you the support you need to access new markets and innovative, tailor-made trade solutions.
Details: Carl Wood
carl.wood@rbs.co.uk
www.businessmag.co.uk
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