Ensure a strong relationship with your bank to mitigate risks
Inciner8 Ltd is a provider of specialist incineration products to international markets. Established in 2006, the company has since secured sales to over 145 different countries.
Our systems are used for a variety of medical and industrial uses including the safe and controlled destruction of materials exposed to the ebola virus in West Africa for The International Red Cross, DFID and the United Nations. The company has grown to a turnover of £6 million and employs 18 people at its manufacturing facility in Southport.
From the first business plan, export markets were a key target for us and they now account for 90 to 95 per cent of our sales. If we had limited ourselves to domestic markets, the company would employ far fewer people, have fewer sales and a much lower turnover.
Our success has been enabled through the guidance we initially received from the UKTI and the strong relationship we have with our bank. One thing we have done is stick rigidly to our payment terms which mitigate much of the risk of international trading. We demand payment in advance or a letter of credit for our systems and we have never had a single bad debt in the last nine years.
The final thing I would add, would be to say that we have been pleasantly surprised how much currency being a British company has in overseas markets. We have found that Made in Britain is an incredibly powerful asset overseas. We manage our reputation carefully but you can’t buy the kind of recognition being a British company brings - the best thing is, it’s free.