
Britain’s red carpets have been getting a lot of use recently. Barely had they been put away in the wake of October’s visit by the Chinese president, before they were rolled out again this week for the Indian prime minister.
The pomp was in full flow for president Xi – who was treated to lavish banquets and a state visit to Buckingham Palace – while India’s Narendra Modi will have lunch with the Queen and address a crowd of 60,000 British Indians at Wembley Stadium. The primary reason for all this wooing of course is trade. The Chinese president brought with him nearly £40bn in contracts between the UK and China, while Downing Street is set to announce £10bn of trade and investment deals with India. For the UK, there’s the wider marketing point too. Royal flesh-pressing aside, both leaders of these economic titans were invited to carefully choreographed calls with successful and innovative British businesses. The message to the outside world is clear – Britain is open for business, and a willing trade partner for ambitious companies everywhere.Rhetoric versus reality
But these official attempts to burnish the image of UK plc aren’t always matched by the behaviour of British companies.- Five ways to avoid late payments from larger buyers
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In a globalised world, business relationships matter
While many emerging economies have been hit hard by the fall in commodity prices, gradually rising levels of domestic consumption in China and India mean there is ever-growing demand beyond our shores.No need, and no benefit
The reasons the companies we interviewed gave for paying overseas suppliers late varied from the optimistic (waiting for the exchange rate to move in their favour) to the sneaky (because they assume it’s harder for overseas suppliers to chase them). But there is no need for, and often little to be gained from, late payment – as there are many tools that allow companies to be protected from volatile exchange rates.Ambassadors every time
British technology, entrepreneurship and innovation have helped thousands of UK businesses to trade successfully with overseas markets. But each business that does so is also an ambassador for UK plc. Consistent late payment of invoices is bad business practice in any market, but is unforgivable when building networks of trading partners overseas. Pride alone should encourage British bosses to treat their foreign trading partners with respect and professionalism each and every time they do business. But if the reality of UK plc fails to match the rhetoric, the Indian prime minister’s visit will be an empty gesture – and British businesses could end up paying higher prices and losing out on vital trading opportunities. David Lamb is head of dealing at the foreign exchange specialists FEXCO.Share this story