Bank of Ireland encourages businesses to revisit their Brexit checklist and consider the three Cs – Cashflow, Currency and Customs
Bank of Ireland is encouraging businesses in the Republic of Ireland to revisit their Brexit preparation checklist as trade deal negotiations enter the final days. Whatever the outcome of the negotiations, there will be changes for businesses trading with or through the UK (noting the specific arrangements relating to trading with Northern Ireland under the Northern Ireland Protocol as agreed by the UK and EU) including potentially more calls on business capital, currency volatility, and new customs requirements.
These are the three things – cashflow, currency, and customs – that every business should think about now:
1. Cashflow – Review your business cashflow
New trading arrangements are likely to bring increased cost. For example, changes to business processes related to Customs compliance or changes in the supply chain could result in increased working capital requirements. Businesses are advised to review their business cashflow, and engage with their bank to discuss their financing requirements.
2. Currency – Manage foreign exchange risk
A potentially significant impact of Brexit is a possible increase in exchange rate volatility. Businesses may need to take steps to help mitigate and manage their foreign exchange risk. Businesses are encouraged to get in touch with their bank to discuss their foreign exchange options. Bank of Ireland has developed a Currency Risk Guide which gives customers more information.
3. Customs – Trading with or through the UK? You may need to apply for a Comprehensive Credit Guarantee
Comprehensive Credit Guarantees from a bank are necessary for certain businesses in a number of import and export situations and will be required if a trade agreement is not reached between the UK and EU. To check whether your business should apply for a Comprehensive Credit Guarantee, businesses in the Republic of Ireland are advised to check with the Revenue Commissioners (Revenue Comprehensive Guarantee information). If you need to apply for a Comprehensive Credit Guarantee, visit our checklist to ensure you are prepared.
June Butler, Head of SME Banking and Sectors, Bank of Ireland said; “We hope for a deal, but whatever the outcome things are going to change on 1 January. That’s why we’re encouraging every business to think about three things – capital, currency and customs – now, before Brexit becomes a reality.
“There are a number of steps to take with the Revenue Commissioners before businesses can apply for a credit guarantee from their bank. We have doubled the number of staff to deal with guarantee applications and our team is on hand to deal with any queries. For those business customers who have not yet taken the necessary steps to be prepared, we urge them to contact Bank of Ireland via our Brexit helpline or through their branch or relationship manager.”
Since 2016 Bank of Ireland has been working with our customers to provide advice and practical support on how they can prepare for Brexit:
- Dedicated Brexit Helpline to support customers 0818 200348 – open 9am to 5pm Monday to Friday including over the Christmas holidays on 24, 30 and 31 December. 21 Trained advisors are available on this helpline to support customers.
- Dedicated Brexit Hub – containing a wide range of information including useful guides for businesses including tariff details and a step by step guide to obtaining a comprehensive guarantee.
Bank of Ireland has a number of financial supports in place to help customers with their specific requirements, whether it is protecting their business from risk or investing for growth and expansion. This includes a €2 billion Brexit Fund designed to support businesses on the island of Ireland flex and adapt to Brexit change, and a €50 million FX Facility designed to support customers in managing their currency exchange risk.