Exporting equipment from UK abroad

Discussion in 'International Business' started by Robbo1983, Feb 1, 2018.

  1. Robbo1983

    Robbo1983 UKBF Newcomer Free Member

    2 0
    Hi,
    New to the forum. Our business gets many requests for supplying goods overseas to parts of Africa, Asia and the middle east etc. Up to now I have decided to not trade overseas with foreign companies to minimise risk. I am now considering exporting goods - is there anything I should be doing to minimise risk?

    The plan is to receive bank transfer funds into our account prior to sending goods out (customers seem happy to do this on initial conversation). The parts/equipment are not manufactured by me and I am simply an agent for the manufacturers. Once I have received funds from the customer, I will be placing an order with the manufacturer and forwarding goods via a freight company (fully insured) to the destination country.

    Are their scams which could overcome this plan, or am I being too risk adverse?

    Thanks in advance.
     
    Posted: Feb 1, 2018 By: Robbo1983 Member since: Feb 1, 2018
    #1
  2. Robbo1983

    Robbo1983 UKBF Newcomer Free Member

    2 0
    Also, if anyone has any experience of sending palletised goods overseas, what is the cheapest way of doing it?
     
    Posted: Feb 1, 2018 By: Robbo1983 Member since: Feb 1, 2018
    #2
  3. Maple Sourcing

    Maple Sourcing UKBF Regular Full Member

    328 71
    Technically it works. However, there also could be risks. Especially for some complicated products (such as machines, furniture, electronic/electrical products with compulsive certifications), as it's tricky to control the quality.

    A client told me a story, he purchased many power chargers for computers --- all of them look legitimate and with CE certificates, but over 25% of them failed in actual use, so, he received lots of complaints and the whole order was a nightmare.

    There also could be communications errors -- you may have purchased something that are not expected by the client.

    At end of day, business is a venture. Follow good practices and start from small. Good luck.
     
    Posted: Feb 4, 2018 By: Maple Sourcing Member since: Oct 8, 2012
    #3
  4. KiterSeb

    KiterSeb UKBF Newcomer Free Member

    3 0
    If you're receiving bank transfer you should be ok.

    I don't know much about shipping to Africa. Asia - Hong Kong is easy, I gather China is more problematic.

    If you're sending to the middle east there might be issues getting the goods through their customs (esp. Saudi, Kuwait, Qatar) and if you're the shipper extra charges etc. will become your responsibility. Best case scenario for you would be for your customer to collect ex works from your premises - not the most customer friendly approach but puts all the risk on them. If you do decide to handle the shipping I'd ship check for issues, import restrictions etc. before accepting the order.
     
    Posted: Feb 8, 2018 By: KiterSeb Member since: Feb 8, 2018
    #4
  5. Neil Lukins

    Neil Lukins UKBF Newcomer Free Member

    20 1
    There are a number of solutions which could help you here.

    • Get the advice off a good shipping agent. They can let you know the details of what is expected for you to export your product. e.g. paperwork rtf
    • Use the correct inco terms. Although not legally binding they could be used to help you to get paid
    • You can ask for payment in advance, however, this does not always go down too well.
    • You could use an Invoice Finance facility if the debtor won' pay in advance. The lender will give you up to 90% up front (less fees) then the 10% not released previously is paid back when the debtor pays
    • If providing terms then definitely get credit insurance. This can be bolted onto the Invoice Finance facility or can be taken separately. The credit Insurers will tell you if your debtor is a good enough risk for offering terms, if they are not good then it is back to pro forma terms and cash up front.

    Trading internationally has its risks but as long as you put the measures in place it can be easier to trade with than a domestic client.

    DM me if your interested in finding out more about Invoice Finance or Credit Insurance.
     
    Posted: Mar 8, 2018 By: Neil Lukins Member since: Sep 7, 2017
    #5
  6. Lawson@CBF

    [email protected] UKBF Contributor Free Member

    90 7
    We ship goods out everyday Nationally and Internationally. Using Pallet networks and dedicated vehicles. If you are still in need of help DM me your email and I will drop you some good names to deal with.
     
    Posted: Mar 12, 2018 By: [email protected] Member since: Jun 30, 2008
    #6