What are the different types of business products?
There are many different types of financial products that facilitate international trade. The most common products to finance business finances can be divided into products that affect the exporter's position before the goods are sent, and those that affect its position after sending. These financial possibilities include loans, guarantees, insurance and extension of loans. Transport delay means that one or the other party must absorb an increased risk of non -payment: either in advance payment below the risk that the command may never be delivered or sends a product to a loan below the risk that payment can never be made. Business financial products exist to improve this risk and ensure that exporters have enough working capital to be effective sellers in the international market.
Two points in an international sales transaction where financial intermediary assistance is particularly important is a preliminary boat where the exporter decides to enter the global market or when the importer first expresses interest in buying the penetrationIt is by order and on the ship when the exporter has goods in transit and is waiting for payment after delivery or sale. During the preliminary profession, the exporter needs a source to produce goods and flexibility of cash to expand to the importer of a sufficient loan to be competitive against other exporters without bringing its cash in transit. After the ship of the goods, the exporter needs payment as quickly as possible to invest again in multiple products.
types of funding of business finance financing during preliminary proceedings include loans for working capital, government guarantees and export insurance. In addition, the financing of the order, the factoring and the abilities of this time is important the form of debt discounting, which was called forfaiting. Loans for capital and government guarantees are often offered as a matter of public policy to allow businesses to enter the global market by providing resources and working capital. Export credit insurance protects the exporter from non -payment of the importer,so that the exporter can extend the credit conditions. Specialized financial companies use the financing of orders, factoring and forfaiting to take over the expected exporter receivables for a fee after evaluating the credibility of the importer.
Business funding products include different types of accreditation and documentary collections. Furtivers are bank warranty that the party will meet its obligations within the international sales transaction. The bank serves as a type of storage agent to exchange documents that will allow the goods to be picked up under the importer's installment. Letters loan can be guaranteed or not supported and can support multiple sales or open sales conditions. Documentary collections work very much like the accreditation in that banks on both sides of the transaction process the exchange of money for delivery documents.