Q) Having built up my business very successfully in the UK, I want to continue my expansion abroad. In particular, I am looking to grow my customer base by starting to trade in Europe and the Far East. However, I don't know where to start. What advice could you give me to help me get started?
A) It is important that you do your research thoroughly before you start exporting goods abroad, especially if you are considering offering credit terms to new customers.
You will be able to find information on foreign markets from your local Business Link. This information is also available online at www.businesslink.gov.uk
The UK Government has several schemes available to UK businesses considering exporting to foreign markets. The Exports Credits Guarantee Department (ECGD) can offer credit insurance to UK companies that will cover them for the sale of capital goods, construction contracts and major overseas projects. You can find more information about The ECGD at www.ecgd.gov.uk
UK Trade and Investment (UKTI) was set up to provide free advice to businesses who wish to start trading overseas for the first time. UKTI can provide you with a check list of points to consider before exporting goods and services overseas. Depending on where your business is based, there may be financial grant support to assist with costs involved when starting to export your products and services abroad. You can visit the UK Trade and Investment website at www.uktradeinvest.gov.uk or call its helpline on 020 7215 8000.
Q) I have just started my own small business, but have no experience and am slowly finding my way through the maze of administration and regulations. One of the main issues I am aware of, but don't know about, is tax. What do I need to do about paying tax or National Insurance?
A) Starting your own business can be a stressful experience, but it is important to remember that there is a vast amount of free support available.
Once you have started in business, you have three months in which to inform HM Customs and the Inland Revenue about becoming self-employed. You will need to complete form CWF1, which is available from the HMCE website. Alternatively, you can call the dedicated helpline for the newly self-employed on 0845 915 45 15, where HMCE staff will help you to complete the form.
If you need legal advice, the Lawyers for Business scheme will provide you with contact details of solicitors in your area, who can provide 30 minutes free legal advice. You can contact the Lawyers for Business scheme on 0207 405 9075.
Q) After a number of years in business, my company is hitting a stumbling block to further growth. My business has a poor credit rating, but I want to overcome this and put it firmly in the past. Are there any ways in which I can improve it?
A) Credit scores are determined from a variety of sources. For incorporated organisations, credit scores are usually calculated from information made available from the company's balance, sheet, for example net worth, acid test ratio and liquidity ratio.
Credit reference agencies will also monitor the number of credit searches against a company and the repayment history of company credit cards. If you are a sole trader, it is vital that your personal finances are kept "clean". If you are using a personal credit card for business purchases, then credit reference agencies will monitor your payment history to determine if you pay your bills on time. The time you have had a credit profile will also affect your credit score.
Business credit scores range from zero to 100, with 75 or more regarded as an excellent rating.
Published: 14/02/2006
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