1 / 10

Taking the Risk out of Export Sales

Taking the Risk out of Export Sales. Presentation to ‘finditinbirmingham’ 3 rd February 2011 Mark Hayward , MIEx (CITA) MJ Hayward Associates Ltd. Export sales – what are the risks?. Export sales – what are the risks?. Will I be paid? Buyer Risk Country Risk Performance risk

lynn
Download Presentation

Taking the Risk out of Export Sales

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Taking the Risk out of Export Sales Presentation to ‘finditinbirmingham’ 3rd February 2011 Mark Hayward, MIEx (CITA) MJ Hayward Associates Ltd

  2. Export sales – what are the risks?

  3. Export sales – what are the risks? • Will I be paid? • Buyer Risk • Country Risk • Performance risk • When will I be paid? • Impact on cash flow • How will I be paid? • Method of payment • How much will I be paid? • Bank charges • Delivery terms – documentation & internal costs • Currency fluctuations

  4. Buyer / Country Risk • Information.... Information..... INFORMATION! • Credit Report • Country updates (war, sanctions, exchange controls) • Credit Risk Insurers • UKTI • Local Agents

  5. RISK LADDER Exporter Importer High Risk Low Risk OPEN ACCOUNT DOCUMENTARY COLLECTIONS   LETTERS OF CREDIT   ADVANCE PAYMENT Low Risk High Risk

  6. LETTER OF CREDIT • A written undertaking • given by a bank on behalf of the importer • to pay the exporter an amount of money • within a specified time at a specified place • provided the exporter presents documents • Which conform to the terms laid down in the letter of credit.

  7. Confirmed Letter of Credit • How strong is the issuing bank? • Country (political / economic) risk? • Added security from a UK based bank • Which bank and how much will it cost? • Consider financing against confirmed L/Cs

  8. Costs of Security • Credit Insurance • Risk appetite, premiums, debt collection • Letters of Credit • Trade Finance • Benchmark your bank or trade finance provider • Service, structures, costs

  9. About MJ Hayward Associates Ltd...... • Export training and consultancy support • In-company courses – groups and 1:1 • 32 years experience in International Trade Finance • Institute of Export accredited • Access to leading trainers and support services • Export Sales, Risks, Documentation, Incoterms, Customs

  10. Taking the Risk out of Export Sales Mark Hayward, MIEx (CITA) MJ Hayward Associates Ltd www.mjhayward.co.uk Phone: 0800 043 4052 Email: info@mjhayward.co.uk

More Related