Export Factoring Market in United Kingdom
The United Kingdom became the 7th highest trade destination in the world with imports worth $681 Billion in 2021. The country has seen a growth of 7% in imports from $636 Billion to $681 Billion in the five year period between 2016 and 2021. Read more
The United Kingdom was the largest importer of Silver ($6.33 Billion), Preserved Meat ($815 Million) Fermented Milk Products ($536 Million), Tissue ($424 Million and Fairground Amusements ($220 Million) in 2021.
The top imports of United Kingdom
- Mineral fuels including oil: US$137.2 billion (16.8% of total imports)
- Machinery including computers: $89.3 billion (11%)
- Electrical machinery, equipment: $31.6 billion (11.6%)
- Vehicles: $73.8 billion (9.1%)
- Electrical machinery, equipment: $66.4 billion (8.1%)
- Gems, precious metals: $60.6 billion (7.4%)
- Pharmaceuticals: $33.1 billion (4.1%)
- Plastics, plastic articles: $22.7 billion (2.8%)
- Optical, technical, medical apparatus: $21.9 billion (2.7%)
- Furniture, bedding, lighting , signs, prefab buildings: $14.6 billion (1.8%)
- Organic chemicals: $14.3 billion (1.8%)
Top ten countries that export to the United Kingdom
Brazil engages in trade with numerous countries, but some nations stand out as its primary trading partners. According to the most recent data, exporters from the following countries supplied 70.8% of the goods imported into Brazil:
- China: $110.41 Billion
- United States: $97.84 Billion
- Germany: $70.98 Billion
- Norway: $53.77 Billion
- France: $34.77 Billion
- Italy: $30.46 Billion
- Netherlands: $28.96 Billion
- Spain: $23.54 Billion
- Belgium: $20.57 Billion
- Ireland: $18.75 Billion
Importance of Trade financing when exporting to the United Kingdom
Trade financing is a vital part in making sure a smooth exporting process to the United Kingdom. Trade financing can also be an important tool in reducing the risks involved in exporting to the country.
- Mitigating Payment Risks: Trade financing instruments like letters of credit (LCs) allow for a certain degree of protection by guaranteeing payment once the agreed upon terms are met.
- Working Capital: When exporting goods to the UK, it is sometimes necessary to pay production, shipping, and other related costs in advance. Trade financing solutions, such as trade loans, give exporters access to operating capital, allowing them to finance their export-related activities. With the help of this funding, exporters can execute orders without exhausting their own resources, and continual cash flow is guaranteed.
- Leverage Growth Opportunity: The UK market is full of expansion opportunities for exporters. Through trade finance options like export credit agencies (ECAs), exporters can receive insurance, credit, and guarantees that allow them to compete on a larger scale and expand their market reach. With financial assistance, exporters can confidently research new business opportunities in the United Kingdom.
- Competitive Advantage: Due to the UK's price-sensitive market, competitive pricing is essential when exporting goods there. Deferred payment periods are possible with trade financing, such as supplier financing, where exporters negotiate credit arrangements with US purchasers. Exporters can provide competitive pricing without risking their ability to pay their bills because of this flexibility.
- Cultivating Business Relationships: Building a good working relationship with UK customers is essential. Trade financing solutions can help cultivate this relationship by providing financial security and dependability to the trades. Exporters can use tools like LCs and attractive financing terms to forge stronger business relationships with their US rivals. More recurring business and increased market penetration may result from this.
Trade financing on KredX GTX
KredX GTX is the first International Trade Finances Services (ITFS) platform licensed by the International Financial Services Centre Association (IFSCA), a statutory authority established by the Government of India. It is a unique, fully-digitised, international trade finance exchange, catering to the financing needs of Indian exporters.
The KredX GTX platform helps you acquire export financing with complete ease. The GTX platform will provide flexible financing options at the lowest rates that fit your specific needs. On the GTX platform exporters can find:
- Large pool of financiers from across the globe
- Transparent bidding system for competitive, best-in-class financing rates
- Effortless and quick disbursal through our self-serve digital platform
- No additional security or collateral required
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