Export payment risk and solutions to protect your business
Trading internationally provides opportunities for a business to find new income sources – but it also has unique challenges.
Distance to market, time zones, cultural and language difficulties, unknown standing of the buyer, country and regulatory impacts are just some of the issues you need to plan for. Foreign exchange, transport, fraud (internet and other scams), sanctions and money laundering all present risks for the exporter.
Before you enter into an agreement, you need to consider:
- Is the opportunity related to your normal business activity / goods flows or is it 'too good to be true'?
- Can your customer really handle the transaction size and do they have a history in importing?
- How well do you really know your customer? Have you done your research (not just from the internet)?
The most important risk from an exporter's viewpoint is whether they will get paid for the goods once shipped.
Although both parties to the commercial sales contract have a mutual interest in each transaction being successful, their respective interests in relation to payment are very different. Good payment terms to the exporter may mean poor payment terms to the importer, or vice versa. Consider starting with a low risk payment option and moving to other payment solutions as confidence in the relationship / payment delivery grows over time.
It is important to understand your options and ensure the payment method is clearly stated and agreed in the underlying commercial contract.
How ANZ can help
We can help you protect and grow your business with a range of export solutions. Our experienced team will work with you to understand your needs and provide solutions to help you mitigate your risks and manage your export cash flows.
To find out more, contact our Trade Finance desk,
ANZ lending criteria, conditions and eligibility criteria apply and fees may be payable.