Once you have written your import or export strategy for international trade, it’s key that you are aware of the financial risks.
This should include conducting basic credit checks on your customers and identifying any potential issues that may stop you gaining business or being paid.
Another thing to consider when you’re getting started in international trade is insuring your goods. This will give you peace of mind in the event of shipment damage or loss.
There are a couple of types of insurance to consider, below is a summary of each:
Getting paid in international trade is slightly more complex than when you get paid by customers in the UK, so you’ll need to weigh up which is the best way to ensure you get paid based on the amount of risk you are willing to take.
There are four main methods of payment, varying in security. The method you choose should be determined by the credit checks you have made regarding your customer and the degree of risk you are prepared – or can afford – to take. Below is a summary of each method so you can weigh up the risks and benefits.