Trade and the importance of cross-border payments

The imposition of trade tariffs continues to disrupt the flow of physical goods between the UK and the US, but trade has found a new channel. Growth this year has shifted toward services and digital trade, facilitated by capital able to move more quickly across borders.

 

Recent figures from HSBC highlight that payments from the UK to US firms rose by 23% in the past year, with transactions in the other direction also rising. Services now account for the majority of British exports, and for many companies, the strength of their customer relationships depends less on ships and containers, and more on the reliability of international payments settling at speed and without interruption.

 

In fact, recently imposed tariff rules are likely to reinforce the current trade setup with the US, where the UK runs a goods deficit but maintains a surplus in services.

 

Fundamentally, this is reshaping the UK’s transatlantic growth story. Finance leaders sit at the centre of a changing trade relationship, with their decisions on liquidity, currency and compliance directly influencing how securely firms expand into the US market, and how steadily they sustain growth as conditions change.

 

 

From shipments to streams of revenue

The UK’s march towards a service-first trading relationship with the US puts new pressure on existing finance systems, which were designed for episodic, high-value transactions, and not the continuous rhythm of cross-border service flows.

 

Meeting payroll across time zones, settling suppliers quickly, and making sure new revenue is used right away have become everyday tests for finance teams. Settlement delays amplify financial pressure, because stalled payments trap cash exactly when it is needed to meet obligations or fund expansion.

 

When there are fewer payment gaps, trust grows between clients, suppliers become less cautious about terms, and boardrooms are more confident to invest back into growth.

 

Policymakers are starting to reflect this shift. In the UK, the FCA has introduced stricter safeguarding rules for payments firms and is consulting on broader reforms to payment systems that aim to prevent disruptions and keep flows moving.

 

In Washington, AML and sanctions oversight have become more stringent, and recent UK–US joint statements signal closer coordination on how cross-border flows are monitored.

 

For CFOs, this means resilience is no longer judged only on cost or speed. It also depends on being able to show, clearly and consistently, how capital moves across every stage of a transaction. This is why finance teams have moved from working at the margins of trade to becoming custodians of its continuity.

 

 

Finance leaders at the centre of trade

Heightened currency market volatility today adds to a broader sense of lost control, impacting business outcomes much earlier in the cycle. Movements in the dollar, for example, can reshape margins long before revenue is reinvested - unsettling forecasts and slowing decision-making.

 

When payments move securely across borders, momentum follows. Boards feel able to approve projects, cross-company teams know funding will arrive, and less money is trapped in limbo.

 

Capital that would otherwise remain idle can be directed into product development, marketing efforts or expansion. This reliability also strengthens cross-border commercial relationships, since firms that deliver payment on time are chosen ahead of those that cannot.

 

Businesses that put clear rules around currency risk - fixing rates at agreed thresholds or holding extra reserves when markets become unsettled - have a steadier line of sight on revenue potential. Stability of that kind keeps pricing predictable, prevents sudden gaps in cash flow, and allows investment plans to move forward without readjustment or delay.

 

When managed well, capital stops being just a safety net and becomes a tool for growth. However, what ultimately defines strength is how firms withstand pressure across liquidity, currency, and compliance together.

 

 

Keeping flows steady under strain

Liquidity is usually where stress shows first. Reserves that are stretched too thin can put obligations at risk, but when held back unnecessarily, they can keep capital idle – missing its chance to deliver growth.

 

To balance this, businesses should scenario test reserve levels directly against payroll and supplier cycles, to support judging whether buffers are sized correctly to keep operations steady.

 

That pressure is compounded by currency fluctuations. Sterling has recorded its steepest one-day fall against the dollar since April, and dropped sharply from recent highs, unsettling forecasts and forcing businesses to reassess margins within days.

 

Companies that agree in advance how to act when exposure builds avoid being forced into reactive choices. Pre-agreed steps such as fixing rates at set points or holding additional reserves in volatile periods build boardroom confidence and keep investment plans on track.

 

Regulation is the final pressure point on financial flows. Each new requirement adds checks that can hold up payments if they are treated as a separate step. Firms that design compliance into their payment processes avoid that drag, keeping capital moving, protecting trust with counterparties, and meeting obligations even as oversight becomes more demanding.

 

Preparation of this kind turns finance into a part of trade that carries momentum forward and sustains competitiveness even as conditions change. It is also what anchors the next stage of UK–US growth, where services and digital trade accelerate, and confidence in capital flows decides how far that growth can run. 

 

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Antonio Ruggiero is Senior Market Research Specialist at Convera

 

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