Ebury is Empowering Furniture SMEs to Trade Internationally
14/Aug/2014 • International Trade•
In a recent Reuters article, Neil Hall states, ‘British retail sales growth rose in July, driven by an upturn in furniture spending’ according to the British Retail Consortium. This is the fastest pace of sales in the sector since January and marks a significant opportunity for furniture SMEs to get involved and increase their turnover.
To make the most of these favourable conditions, SME furniture companies need to have a secure supply chain and an established credit provider who can enable them to place large orders overseas. This is important since long lead times from ordering to receiving the product in the UK often means that stockouts occur – making larger purchases mitigates this risk. A credit line can also free working capital and allow SMEs to pay suppliers up-front, hence reducing prices.
Ebury Trade Finance is particularly helpful to industry sectors that require the purchase of high-value components or other large-ticket items, with long lead times, such as furniture. The high-value of items in this market mean it is desirous to buy in bulk to achieve discount rates but doing so requires access to a large amount of finance. Lead time is also reduced as it is possible to establish a reliable repeat order so as to guarantee you have the products available to sell.
Ebury’s Trade Finance offering is purposely built to help companies similar to furniture importers and manufacturers. The margin squeeze in recent years has made it necessary to increase supply chain sophistication, and try to pass some of the price pressure on to suppliers.
In this competitive environment it is important to secure low supplier costs and have an accessible finance solution which can be utilised whenever necessary. Ebury Trade Finance can comprehensively solve the cash flow issues around financing purchase orders. It provides credit to enable companies to purchase goods from their suppliers – up to a value of £1,000,000 for up to 120 days – and this credit facility costs nothing to maintain, just a simple payment per purchase.
The landscape of international trade is changing and Ebury is evolving with it. If you are interested in how Ebury Trade Finance can help your business, apply online now.