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Ebury and Spain

Our Spanish co-founders established Ebury to help businesses better fund and manage their international trade, with financial services expertise combined with innovative new technologies.

Ebury has over 350 employees across Europe, with particular strength in our London headquarters and Madrid office, and we’re increasingly approached by UK businesses looking to trade with Spain. We’ve already helped over 800 customers trade with Spain and we’re here to support your business.

You never need to miss an export opportunity with the right financial tools in place. Ebury provides a unique combination of lending, currency and payment products, supported by access to world class insight and analysis to help our clients succeed.

Our team in the UK, alongside our Spanish team in Madrid, notes the concerns regularly brought to us by our SME clients.

 

Payment terms

DIT states that one challenge for UK businesses exporting to Spain is the ‘long payment terms, with many organisations working on 90 to 120 payment days’.

One way experienced exporters mitigate the impact of lengthy payment terms is by alleviating cash flow issues on the other side of the trade cycle.

Using an unsecured, revolving credit line linked to supplier invoices, is a common solution.

It does not need to impact any accounts receivable finance arrangements and can increase the number of export clients you can viably trade with. In this way, UK businesses can offer a reliable service to their Spanish customers.

It’s well known that SMEs, just like large corporates, need currency risk management strategies when trading internationally. However, what’s not often mentioned is the huge deposits many financial institutions require from SMEs in order to secure these forward contracts. Finding a foreign exchange provider with better credit terms will ease cash flow requirements and lift the pressure of delayed customer payments.

For more on how we can fuel business growth visit ebury.com

 

Brexit uncertainty

Businesses face uncertain times in the wake of the UK’s Brexit vote. Trading arrangements with the EU will take time to define and financial markets have suffered extreme volatility.

This uncertainty spilled over into the currency markets, with Sterling experiencing its largest ever one day fall.

Many businesses employed extensive currency risk management strategies in the build up to the EU referendum, locking in favourable exchange rates before the more severe volatility began. The exchange rate still fluctuates widely, with the potential to erode margins, so businesses should continue to hedge.

The impact of the Brexit result can already be clearly seen in Spain’s leading stock index, the IBEX 35, which lost more than 1,000 points - far more than either French or German stock markets.

Because of this it’s important to work with a foreign exchange provider who understands the specific risks involved in trading with Spain and can provide expert insight into the local economic and political factors driving your currencies to ensure you protect business margins.

For more on how we can protect business margins from currency volatility visit ebury.com

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