Export/Import Updates!
April 29, 2020

3 Trade Finance Risks Exporters Should Beware of

Trade finance can make or break the success of your business. What can you do to prevent finance risks affecting your export business? Our upcoming webinars look at some of the answers. 

Trade finance can make or break the success of your business. What can you do to prevent finance risks affecting your export business? Our upcoming webinar looks at some of the answers. 

As the world becomes more and more connected, and with advances in technology, trading around the world has become easier. From the biggest corporations to the smallest firms exporting and importing can be managed simply at the click of a mouse.

Platforms like Cogoport’s marketplace community help ease the logistical challenges of doing business globally. 

 However, many businesses face several challenges, including managing trade finance. Getting it wrong can be costly to your business. 


So what risks do exporters have to bear in mind when thinking about their trade?

1. The trading environment

Not everywhere may be as stable as your home market. Consignments can get lost or held up, payments can be delayed or complicated or communications difficult. Before taking on a transaction overseas, an exporter does well to think about and plan for: the ease of doing business due to the efficiency of local systems covering customs, banking and transportation communications reliability in terms of telecoms and shared understanding the stability and transparency of the regulatory environment whether any major players control aspects of the market already.

Solution: As well as conducting due diligence, consider working with an agent or partner who understands the market which you are entering. 

2. Fluctuating finance risks

Currency volatility has always been a concern for exporters, especially when consignments have to travel a long way or run the risk of delays in port or customs. With high-value shipments, variations of just a few percentage points can represent a significant risk to an exporter.

Solution: Investigate a hedging strategy with your bank or finance partner. You can also attempt to negotiate terms with your consignees that share some of the exposure.

3. Borrowing Risks

Borrowing risks, also known as credit risks, are derived from the possibility of financial loss. This is due to failure to repay borrowed funds or meeting contractual obligations. Even if you do eventually get paid, the delay in your cash flow can be a nightmare when you have staff and suppliers to pay!

Solution: Have a solid understanding of whom you are dealing with and their ability to pay on time. Assess their creditworthiness, gather informal intelligence among your contacts to see what reputation your consignee has and price your goods accordingly. Our webinar will also touch on strategies to manage these risks. 

Assessing trade finance risks is essential for successful business growth and development. Want to know more in detail about international trade finance and its risks to protect your export business? Join our webinar to get the best information from experts in the market!



Trade Finance
Editorial Team
Editorial Team
Customer success manager

More articles

Freight, and What Can Happen to it, Sustainability, Analytics, and Tech

Freight, and What Can Happen to it, Sustainability, Analytics, and Tech

This Week in Ocean Freight

Editorial Team
Editorial Team
This is some text inside of a div block.
Ocean Alliance – CMA CGM to Reshuffle Its Asia-Middle East Services from July End

Ocean Alliance – CMA CGM to Reshuffle Its Asia-Middle East Services from July End

CMA CMG announces change in Ocean Alliance Day Two Product, Asia-Middle East Service

Editorial Team
Editorial Team
This is some text inside of a div block.
Trade Deficit Explained!

Trade Deficit Explained!

Trade deficits can affect a country's growth and threaten it's employment and currency status

Editorial Team
Editorial Team
This is some text inside of a div block.
Global Buyers Look Towards India amid Coronavirus Outbreak in China

Global Buyers Look Towards India amid Coronavirus Outbreak in China

Indian Manufacturers and exporters have received an increase in the number of queries coming for their products.

Editorial Team
Editorial Team
This is some text inside of a div block.
Top 12 Things to Keep in Mind While Exporting to a Foreign Country

Top 12 Things to Keep in Mind While Exporting to a Foreign Country

Know the importance of place, product description, customer satisfaction, transport feasibility, product demand, marketing, costing, insurance, capital and resource requirement

Editorial Team
Editorial Team
This is some text inside of a div block.
 7 Expert Tips for SMEs to Improve Their Credit Score

7 Expert Tips for SMEs to Improve Their Credit Score

Improve your credit score by being tax compliant, maintaining a single bank account, using banking channels, paying dues on time, keeping a good personal credit history.

Editorial Team
Editorial Team
This is some text inside of a div block.
Export/Import Updates!

Heading

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

Sara Smith
Customer success manager

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

Heading

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Resources

No items found.