Export & Import Risk Solutions:
As a global trade house, we concern ourselves with all domestic and international trade facilitations. This may include analyzing many risks associated in the process. Credit Defaults, Sea Robberies, Commercial Disputes, Foreign Exchange Fluctuations and the list goes on. We gladly take the hassle of analyzing and mitigating against all risks to be expected in the Export & Import business. Our added value is to facilitate the fastest and safest payment settlement for the supplier while we ensure the recieve of goods to the buyer in the best condition and with the specifications agreed on.
One of the major commercial risks is the lack of commercial knowledge about the international market. If an exporter who does not have proper knowledge about the area of product demand and where to markets his product, no doubt, he may fail in international business. In this regard, we save the exporter the time & effort and provide the exporter extensive studies of the targeting foreign market and recommendations over the best marketing approach to such product market.
Another situation you might find yourself in while doing international business is that you, the supplier, might have exported a consignment to your overseas buyer, but in between, due to various reasons, changes in the performa happened, amendments in export order, cancellation etc. In this situation, the exporter will be obligated to handle these issues alone which have not been anticipated before export. Why go through all this headache when you have us to worry about such difficulties.
There are many of other types of commercial risks. We have noticed that most of these risks are to be borne by the exporters. Exporters cannot shift these risks to the professional risks bearers, paying insurance premium. The exporter is not aware of the conditions in the foreign market as the way he is aware of domestic market. Long distances to travel along with cost and time implication distinguish international trade form domestic trade and this is where we come in.
Transportation of cargo has undergone radical improvements over the history. Most of the goods are transported by sea. Transit risks are a common hazard for those engaged in Export & Import business. The list of hazardous risks in transit is long. This includes storms, collisions, theft, leakage, explosions, spoilage, fire, and high sea robbery. Every exporter should have a working knowledge of marine insurance so he knows whether he is getting the required risk protection at the minimum cost. It is always possible to transfer the financial losses resulting from perils of sea and perils in transit to professional risk bearers. Principles of marine insurance are also equally applicable to insurance of air and land cargos. We can gladly walk you through some of the best solutions in this domain.
Credit risk is another important factor in any business especially in international business. Compared to the domestic market, credit risk is very high in the export-import business. Risks are inherent in credit transactions, more so in international business. Credit risk is not the same whether one sells the goods in the domestic market or in the foreign market. Success in international business depends largely on the ability of the exporters to give credit to importers on the most competitive and favorable terms. Export business has become highly risky due to the fact that selling on credit has become very common. Insolvency rate is on the increase. A balance of payment difficulties has severely affected the capacity of many importers to pay the price. However, offering credit has become unavoidable to the exporters to face competition. Our long experience in this domain can ease your mind by ensuring instant payment solutions to you.
As you know, the policy of each country varies from another country in many areas of the subject which may change time to time. Each country has their own policies in various levels of relationship with other countries. In international business, the risks arise due to change in political situations in the concerned importing and exporting countries which may severely affect import & export trade of international businesses. Here are some of those risks that we can help avoid:
- Buyer’s failure to obtain an import license or exchange authorization in his country
- Causes inherent in the nature of the goods per the country’s approved specifications
- New import restrictions in the buyer’s country after the date of shipment or contract
- Cancellation of valid export license or imposition of new licensing restrictions after the date shipment or contract