As we all well aware, small businesses have been hit hard by the pandemic of COVID-19. We don’t know when this crisis is going to end; – whether within a month or two to stretches into years. So, as an SME, it’s a must to know the tips which you need to follow; to keep your business moving. In this video, we have come up with a trade finance guide; that will provide you a few important tips for your business.
Trade Finance Guide for Importers
Identify the Market Demand
Before investing your working capital to import goods from overseas; do better research to find out which product is having more demand on the market. For instance: In the covid-19 crisis, supplies such as face masks, gloves, sanitizers, medical equipment; and even agro food products are having more demand. So do analysis; then, find out the best product; to import and invest your capitals wisely.
Manage Cash Flow Issues
Since the economy is unstable, even large enterprises are not investing their working capitals; to keep their business survive for the next few months. So, make a better plan to manage your cash flows and don’t tie up your funds in your upcoming deal. Rather, you can use Bank Instruments such as LC or SBLC; to give assurance to your seller; while importing goods from overseas.
Identify the Trading Risks Involved
As like all businesses, import and export also come with its own risks. While doing business with overseas sellers, you may face – political risks such as foreign exchange controls, restrictions on foreign currency transfer, etc. Further, payment risks – non-payment of delivered goods by the buyer, and currency fluctuation issues. So, before signing the contract with the seller; it’s must find a better solution to cope up with all these issues. If you require a risk-free payment method that you can trust; you can use LC Payment Term.
Finding the Right Trade Finance Product
Using trade finances or bank instruments for your import and export deals can help you to secure your transactions. Also, it will help you to conclude your deals; without investing your cash funds. Bank Instruments available for traders include – Letter of Credit, Standby Letter of Credit, and Bank Guarantees. To find the right financial product for your business; you can get help from Bank Instruments providers.
These are the few tips you need to follow to keep your import and export business afloat amid COVID-19.
If you require any of our Bank Instruments to import goods from a global supplier; you can contact us at any time! Our experts team can structure your deal; and will provide the required facility within 48hrs!
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