Brexit: how well prepared are you?

Brexit = impact on your business

Developments are almost impossible to follow, so fast they are happening. But unfortunately for you: you do need to follow them. Because a brexit has impact on all businesses operating in the EU. Exactly how big that impact will be remains to be seen. It will depend on exactly what (no-)deal will come. But what is already clear: you should take precautions, if you have not already done so. And especially if your business is (partly) dependent on exports to the UK.

These are the consequences of brexit

For those wondering why measures are even necessary, we briefly summarise, point by point, a number of dramatic consequences of brexit in a row:

• British pound devaluation
• Sharp fall in purchasing power Britons (estimate: 10%)
• Decline in share prices in both UK and EU
• Decrease in exports to the UK
• Decrease in number of investments in the UK
• Increase in bankruptcies in the UK (such as Thomas Cook recently)
• Rise in UK unemployment
• Risk of food, fuel and medicine shortages in the UK (in the event of a no-deal brexit)
• More border controls, customs procedures and import tariffs (in the event of a no-deal brexit)

You can take these measures

Hopefully, you are now (even more) convinced of the need for precautionary measures. But the big question, of course, is: which measures can you all take? We will give you some examples:

• Mapping your currency risks and cover it with a currency option. For a small (insurance) premium, you are then protected against a fall in the pound, however big that fall may be.
• The (permanent) monitoring of the creditworthiness and the payment behaviour from your buyers. If you want to avoid having to write off receivables - due to non-payments and/or bankruptcies of your UK customers - then credit insurance of your buyers is certainly not a luxury.
• In addition, the EU is considering two emergency funds open to businesses and governments damaged by the Brexit. Approval on these funds (and estimated amounts) is yet to be given. They are:
  1. The European Solidarity Fund; normally intended for countries hit by natural disasters, soon also intended for countries hit by huge costs. Total fund size: €600 million.
  2. The globalisation fund; intended for workers who lose their jobs as a result of brexit and need retraining. Total fund size: €300 million.

Don't miss any of the brexit news?

You see: there is plenty you can do to be ready for brexit, but there are also many open ends. Do you want to stay well informed about all developments in the UK? We will be happy to keep you informed! Follow Xolv on LinkedIn or register you and your colleagues for our newsletter. Then you will always be up to date and well prepared for brexit!