Longer delivery lead times don’t just make planning more difficult. They also add to the financing burden, with either importer or exporter needing to cover the extra delay between goods leaving the supplier and reaching the customer.
Equally, you need to protect yourself against the risk that your customer fails to pay or your supplier fails to deliver what has been agreed. Enforcing your rights in another country can be at best difficult and at worst impossible.
Agreeing prices in a foreign currency adds another complication. If foreign exchange rates change, you could end up receiving less (in pounds sterling) than you had expected, or paying more.
Our international trade financing tool helps you understand how you can use different types of financing to manage your risks. Using the right kinds of financing not only helps protect you, but can put you in a position to negotiate a better deal.