Advisory “post export” addresses key aspects of all the activities which take place once the export is done, like-
There’s a big risk if you’re shipping to somebody you don’t know well. Most of the businesses do it with agencies they have no good relationship with. There’s no guarantee of payment in this case. Well, there are different schemes run by the government of diverse countries to ensure the guarantees for large projects. Better is to take helps from the people who know these methodologies well and provide the best advice.
Appropriate payment methods play important role in winning the sales against competitors. Also receiving on time full payments, is the top goal of exporters. But international trade consist high risk in achieving this goal. This is why, exporters desire to get paid as soon as an order is placed which is not acceptable by many buyers. So getting payment as soon as products are exported is something most desired by exporters.
So an appropriate payment method which minimize the payment risk and also easy for buyers must be chosen by the exporters. Trade Service Provider will provide the best advises in choosing the appropriate methods which fits in the figure, for your international trade.Trade Service Provider provide advisory on every methods like-
This method is desired by many exporters because it less credit risk than any other. Exporters get cash in advance the help of escrow services, wire transfers and credit cards. This method can be the first choice of many exporters but there are also some disadvantages with this. Most buyer doesn't find it attractive as they are concerned with the receipt of goods. Thus, there are possibilities of losing the business for exporters who stick to this method.
Probably the most secure payment method in international trade is letter of credit (LC). Through it, payment of export is committed by the bank on behalf of buyer. For this, all terms and conditions stated in LC must be met as per the documentation. Also its useful when there's difficulty in obtaining the reliable credit information about buyer. It's beneficial for buyer too, as no payment done to exporters before the goods shipped.
In documentary collections (D/C) method, exporters rely on its bank for the payment. Exporter's bank sends documents to importer's bank which releases the documents to buyer for payment. After receiving funds from buyer, bank remits that to exporter's bank. Thus, payment is collected by the exporter's bank. Being less expensive method than LC, D/C doesn't offer limited recourse in case of non-payment.
Open account method is the most advantageous method for importers as it makes the payment due 30-90 days after the products are shipped. But this method contains high payment risk for exporters. These days, many buyers press exporters for open account method of payment. Due to the increased competition, exporters may agree to it, as denying may let the business slipped to their competitors.Trade Service Provider provide best consulting to exporters so that they can decrease the risk of non-payment while using open account payment method.
Consignment method is very risky for the exporters as, through this method exporter get paid only after the sales for their exported products by distributor to the end customer. There's no guarantee of payment to exporter, but this method helps exporter to be more competitive in the market. It also reduces the other costs like storing and managing inventory. For successful export on consignment, partnership with trustworthy foreign distributor is must. Trade Service Provider can help with selection of such distributor and appropriate insurance.
There're many agents or suppliers who defraud their exporters by sharing their original products to some other cheap and local manufacturers. They sell exporter's brand with another name. Brand registration to avoid such kind of fraud also comes under the advisory "post export".
Some other activities are like- foreign exchange management, supplier financing, discounting etc. Also, after the export, exporter should make arrangement and include the suppliers, so that he could keep receiving business from them in future.
Trade Service Provider help you with pre-export advisory services.Trade Service Provider have a years of experience in working with overseas governments,
Advisory services during the export like finance, certification and verification of documents, company visit, marketing strategy etc.