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Understand the risks in your international-trade cycle

International-trade is a great opportunity to reach more customers and grow your business, but there may be risks like:

  • Not getting paid on time for exports.
  • Not having imports delivered on time.
  • Changes in currency exchange rates.

We can help you find a solution to manage these risks, so you can trade with confidence.

  • Our export trade cycle shows the typical stages in international trade.

    When you sell goods and services outside the UK, you may be exposed to risks at any stage in the trade cycle, like extensions to the terms of payment, which could have an impact on your cash flow.

    Understanding your trade cycle can help identify the different types of risk at each stage.

    Choose a stage in the typical trade cycle to see what risks you may find:

    Tendering

    Changes in currency exchange rates during the tendering process can have a negative impact on your costs of income.

    Contract signed

    Your contract should include clear instructions and responsibilities for both buyer and seller, or your business may be at risk of a dispute with your customers.

    Materials sourced

    If you don't consider changes in foreign exchange this could impact the price of producing your goods.

    Goods produced

    If the quality or source of your production material doesn't meet local regulations, your business may be at risk of a dispute over terms.

    Goods delivery

    Not clearly setting out the terms of delivery, like who is responsible for storage or insurance, could put your business at risk.

    Goods invoiced

    Your invoice should be sent with a clear payment date and meet any local requirements or you may not be paid.

    Goods arrived

    If details of how your goods should be handled on arrival aren't clear and agreed, you could be at risk of delays or damage to your goods.

    Invoice paid

    The risk of your invoice not being paid can have a negative effect on your cash flow and profitability.

    • A change in exchange rates can decrease the amount you receive for your exports. This may affect your cash flow and profitability.

Our import trade cycle shows the typical stages in international trade.

When you source goods and services outside the UK, you may be exposed to risks at any stage in the trade cycle, like loss in transit or late delivery of goods, or changes in the exchange rate.

Understanding your trade cycle can help identify the different types of risk at each stage.

Choose a stage in the typical trade cycle to see what risks you may find:

Sourcing

Local costs and changes in the currency exchange rate may put the price you agree with suppliers at risk.

Contracts

A poorly written agreement, without detailed terms and conditions, can put your business at risk of a dispute with suppliers.

Pre-shipment

Without a pre-shipment check you're at risk of not receiving the goods you've ordered or the quality you expect.

Shipment

Importing goods over long distances can reduce the control you have over the risks of loss, damage or delay.

Storage

Not having the right storage for your goods when they arrive can put them at risk of damage, loss or deterioration which may affect your costs.

Invoice received

If details on the invoice differ from the agreement, you may be at risk of paying too much of paying for goods you haven't received.

Invoice paid

Paying the invoice before you've inspected your order can put your business at risk of a dispute over the terms of your agreement.

  • Changes in currency exchange rates can increase the cost of your imports and affect your cash flow and profitability.

Key international trade risks

From the risk of not getting paid to currency fluctuations, we have a solution for the key risks your business may face when trading overseas.

Not getting paid

We can help your business reduce the risk of not getting paid for your goods or services.

Find out howwe can help your business reduce the risk of not getting paid for your goods or services.

Not receiving goods

If your business has bought goods or services from a new overseas supplier, and you don’t receive them, your business may be exposed to financial risk.  We can help.

Find out howwe can help your business.

Exchange-rate risk

We can help you avoid exposure to the risk of changes in currency exchange rates.

Find out howwe can help avoid exposure to the risk of changes in currency exchange rates.

International Product Selector

We have a range of solutions to help your business trade overseas

Find out moreabout the International Product Selector.

Contact us

If you'd like to speak to a Financial Risk Manager to find out more about how we can help, call us on

+44 (0) 845 877 4451

We are available from 8am to 6pm Monday to Friday, except Public Holidays.

Alternatively, please email us.

Important legal information

Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278. Telephone: 020 7626 1500

The products and services outlined on this site may be offered by legal entities from across Lloyds Banking Group, including Lloyds Bank plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc and Lloyds Bank Corporate Markets plc are separate legal entities within the Lloyds Banking Group.
Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.