By Rashmi Pandya, Macalvins’ COO
There’s a lot to be excited about when a business starts to look beyond the UK for growth.
New customers, different markets, a bigger playing field, it all feels like a natural next step.
But amidst the buzz of opportunity, it’s easy to overlook how exporting will affect the movement of cash through the business.
Trading across borders comes with its own rhythm, and making sure your finances can keep up is one of the smartest moves you can make early on.
Why cash can feel tighter when trading abroad
When a business starts selling internationally, a few things typically happen:
- Orders might be larger, but so are the upfront costs
- Payments may take longer to arrive, especially across time zones and banking systems
- Shipping times stretch out the gap between sending goods and seeing the money
- Some markets expect more generous credit terms than you’d offer locally
On paper, international sales may look profitable, and they often are, but the timing of money in and money out can shift just enough to put strain on day-to-day operations, particularly if margins are slim or stock turnover slows.
Planning for pace, not just profit
If cash is committed to fulfilling orders, paying for transport, or settling foreign taxes before any payment is received, something else may need to give.
That could mean tapping into reserves, extending borrowing, or pushing back other plans, none of which are ideal if unexpected.
So before the first shipment leaves the UK, it is worth building a clear picture of how cash will flow through the business under different conditions, best case, worst case, and somewhere in between.
This kind of planning gives you options. It might mean rethinking payment terms. It might highlight the need for a buffer. Either way, it’s far better to address this now than six months in, when funds are tight and flexibility is limited.
Measures worth considering
Depending on the nature of the business and the markets involved, there are a few tools that can help reduce financial pressure without slowing momentum:
- Split payments – Requesting a portion upfront can ease pressure before goods are shipped
- Stronger credit control – International customers may be slower to pay, so it helps to have clear terms and follow-ups
- Flexible supplier arrangements – Longer payment terms or staggered invoicing can help smooth the outflow
- Currency planning – Agreeing deals in sterling or using hedging options can protect against volatility
- Trade finance options – If there’s a shortfall between delivery and payment, bridging finance might be worth exploring
None of these are silver bullets, but they create breathing room, and that breathing room can make all the difference in a new market.
Be clear on the practical hurdles
Every country has its own way of doing things. These aren’t always barriers, but they can delay access to funds if not factored in from the outset.
In markets where money can be slow to leave the country, for instance, it is worth knowing exactly what’s required to complete a transaction.
That might involve documentation, approvals, or taxes that weren’t part of the original forecast.
Clarity early on saves a lot of backtracking later.
Exporting doesn’t just change where you do business, it changes how money moves through your business.
That doesn’t need to be a problem, but it does need to be understood.
Strong financial planning is about giving your business the room to grow without being caught out by delays, costs or over-optimism.
If international trade is on your radar, it is time get the numbers clear and the plan solid, so when opportunity comes knocking, you’re ready for it.
We’d love to talk with you to help you explore your options. Contact us today.