LONDON, 12 December 2008 –

British companies are being urged to look for new export customers to take advantage of the weak sterling and increased competitiveness against their US and European peers. However, the UK’s leading insurance broker Aon is advising companies to speak to credit insurers to assess which buyers offer the best credit risks.

In support, the newly launched British Exporter Association’s Guide to Successful Exporting, edited by insurance broker Aon’s Susan Ross, is helping businesses to avoid common pitfalls – such as bad debts from customer insolvency – that could threaten their profitability.

Sterling has fallen by a quarter versus the US dollar since the summer. As such, British exporters should find that their products, if priced in pounds, will look attractive overseas – especially in the oil-producing countries that are financially relatively strong and whose imports are traditionally in dollars.

Faced with new opportunities, the guide sets out practical steps in trading internationally such as being aware of local customs, how to win bids and arranging credit insurance in case a customer goes bust. However, Susan has seen that one of the biggest obstacles is choosing the wrong local representative to help market and sell companies’ products.

When choosing effective local representatives, companies need to know:

• how long they have been representing foreign companies
• whether they can communicate fluently in English
• if they are working on their own or as part of a company
• their track record of winning sales and making good contacts in your industry
• if they already represent a competitor: be aware of the occasional unscrupulous agent who will be keen to represent you to gain credibility, but without the intention to increase your sales.

Susan Ross, director of Aon Trade Credit, deputy chairman of BExA and editor of the guide, said: "As we seek to trade ourselves out of a recession, we need our exports to keep the UK in good financial health. There is no point in setting out to export unless you are also able to make it profitable. We’ve created the guide to trigger companies’ thoughts on how they can achieve success while managing areas like cashflow and documentary issues in these tough economic times."

President of BExA, Sir Richard Needham, commented: "Successful exports don’t just happen. Many exporters learn the ropes by trial and error or being an apprentice on a team. In the guide, we have tapped into the experiences of seasoned exporters to share ideas about how to avoid the main pitfalls and build a successful exporting business."

The guide has been sponsored by the Royal Bank of Scotland.