Prepare your business to operate in an export market

Guidance on great.gov.uk

Understand local business culture

Business practices can vary widely across export markets. There’s a much greater chance of a business deal being successful if you’ve built credibility by taking the time to understand the local culture.

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Use your network and talk to people who have worked in the market. If the business culture is relationship based, your customers may want to get to know you before doing a deal. But if it’s transactional, be prepared to get right down to business.

Guidance on great.gov.uk

Manage bribery and corruption overseas

Corrupt behaviour is often hard to spot, especially when you’re operating in an unfamiliar culture. Before you do business with another organisation, it’s important to carry out background checks.

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When doing business, pay close attention if the people you're dealing with try to rush through any business without allowing for due diligence or provide very little paperwork. Ask yourself – does this seem appropriate or proportional? Does it make sense, and would you carry on doing business if this was happening back in the UK?

Guidance on great.gov.uk

Understand payment terms

Payment terms are agreements which ensure you get paid the right amount by your buyers, at a time that’s right for you. Well-constructed payment terms are your first safeguard against non-payment.

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Consumer sales are usually paid at the point of sale. But with business sales it can be more complex. The terms you agree with your buyers depend on several factors, including how much business you’re negotiating and the level of non-payment risk in your export market.

Guidance on great.gov.uk

Ensure you get paid

Different countries have different regulations and laws around payments. You may find your preferred method of payment won’t be possible, so do your research before you start exporting.

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You can negotiate payment terms to reduce the risk of non-payment – for example, getting buyers to pay in advance if they’re new to you. For larger payments or where you need more security, there are financial products provided by banks, such as letters of credit, which can reduce or remove risk.