Late payments put UK firms off exporting

Date: 2nd June 2010

Fear of receiving late payments from clients is putting British businesses off exporting, new research has shown.

According to a new report by Lloyds TSB Commercial, just 32 per cent of smaller British businesses currently export.

Among the main reasons for not exporting are fear of a lack of demand (39 per cent) and worries about receiving late payments (21 per cent).

However, data from the Lloyds study also showed that 62 per cent of smaller firms that are currently exporting have experienced growth in foreign markets over the last 12 months.

John Maltby, managing director at Lloyds TSB Commercial, said: "There really is a world of opportunity out there for British small businesses.

"Many firms are turning overseas demand and a weaker sterling to their advantage as they seek to grow. Others are clearly missing a trick."

Other reasons for not entering the export market were potential debt worries (20 per cent), lack of resources to explore new markets (21 per cent), currency fluctuations (18 per cent) and language barriers (16 per cent).

Posted by Thomas Fletcher