It has to be said that, so far, much of the commentary has been focused on the predicted threats that Brexit brings to the economy, but as everyone in business knows, with risk and challenge comes opportunity.
While we don’t yet know exactly what will happen on the date in question (or even if anything will happen), typical supply chain lead times mean that, for many, now is the time to act, with business decisions being finalised and plans put into action.
Some businesses are choosing to stockpile goods in preparation for any problems at the borders, and this offers a massive opportunity for those manufacturers and suppliers who can step up and fulfil that demand.
However, unless you have the funding in place to fulfil such an order, such an opportunity could be beyond your reach. Taking on a sudden big order in addition to your usual workflow will require an injection of money to purchase the component parts or finished goods that you need to deliver on the order.
We’re currently seeing an increase in requests for trade finance for exactly that reason, with companies getting their funding lines in place so they’re in a position to take advantage of this trend for stockpiling. However, not everyone is planning ahead in this way, and we’d recommend that people don’t wait for Brexit to happen, but come to us as soon as possible so we can start working with active lenders to get deals in place.
When the call comes – as it did for one client who was recently asked to supply an extra 1.6 million units of its product to a major UK supermarket – will you be ready to react? It’s not just about taking advantage of a one-off opportunity; delivering in such instances will also help develop better, trusting relationships with customers who know they can rely on you, so the benefits could be long lived.
Don’t wait for things to happen – be proactive, plan ahead and let us help you get your finances in order sooner rather than later.
Paul Goodman (c)