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What Everybody Should Know... About How To How To Obtain Trade Financing

Added: (Wed May 25 2005)

Pressbox (Press Release) - Doing business abroad can be a complicated, frustrating and risky endeavour
at times. Reliable International Trade Strategies should let companies gain
a competitive edge by understanding the newest techniques and structures and
the growing demands of leading producers, exporters and traders.

In an increasingly competitive world, successful companies and their
corporate managers need to understand the sophistication and subtleties of
modern corporate finance, international finance markets, global best
practices and financial management. Every programme should take you beyond
understanding cutting-edge Trade Financing concepts, to applying
conceptually sound techniques for obtaining an edge over competition.

Global Situations have changed a lot. For an example, foreign companies and
banks have been exceedingly patient in their dealings with China. But now
various liberalization measures linked to WTO commitments are beginning to
kick in, and this in turn is giving added impetus to those institutions
seeking a greater role in financing trade.

French banks are constantly at the forefront in vying for trade finance
mandates. Some institutions have regional or product specialization while
others are seen as truly global in their aspect. One thing they all have in
common is the desire to build even bigger global portfolios.

Africa has long been a source of structured trade deals, but has so far been
protected from dwindling returns and over-liquidity that the market has seen
elsewhere. Appetite is growing, but so far the gradual increase in
competition has not affected margins earned.

Forfaiting was invented as a means whereby exporters could offer credit to
their importers and sell the debt receivables to a bank on non-recourse
terms. With the improvement of economies in many emerging markets, importers
can now often obtain local finance more cheaply, with the result that
forfaiters are now looking for new sources of business. The growing need of
companies to boost liquidity by selling off their receivables provides one
promising source. The dramatic rise of China as a major trading nation
suggests another tempting avenue to explore. Michael Rowe investigates.

Risk management is imperative when trading with other countries.

Since export orders are (almost always) accompanied by some method of
payment...Letter of Credit, Sight or Bank Draft, etc...your local banker
will (usually) be willing to advance funds against that documentation.
Beyond that, Governments offer a wide variety of financing
incentives...everything from free grants to production financing... for
exporters. And, even the smallest of companies can qualify for that
financing because the financial strength of the foreign buyer, not the
manufacturing company, determines the creditability of the transaction.

Another way is to approach International Banks, but with local Branches.
There are numerous Financial Institutions, but to check out who are the
best, you can look at "Global Finance's" World's Best Trade Finance Banks.

A Little Mistake by trusting somebody you don't know or being blinded by
huge promises, can cost you huge financial losses. Well-established Trade
Financing Institutions will ensure that you can concentrate on your product
without any risks taken.

Pierre Pienaar
Xcellence Biz Creator
Box 30662
Tel: +264 61 243704 (GMT 1+)
Fax: +264 61 247037 (GMT 1+)
E-mail: pienaar@iway.na
P.S. I got a website you should check out. Get a pencil and jot this down
somewhere you won't lose it. The website address is
P.P.S. Get the Current issue of Entrepreneurial Xcellence
Free Monthly Newsletter at http://www.xcelwealth.com/fm17.html

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