
International trade
If you are considering importing or exporting, you can find tips and instructions in these guides.
If you are considering importing or exporting, you can find tips and instructions in these guides.
We start by taking a look at what makes companies import. It can be about price and quality. Companies can import due to a desire to:
Once you have identified the reason why your business needs to import, you have a good starting point for organizing the process.
These are the typical reasons why companies export abroad:
Of course, there may also be other, more practical reasons such as a foreign customer having heard of your product and wanting to buy it - but in any case, it's a good idea to know your reasons so you can make sure it fits your business strategy.
If an initial request to buy or sell does not work out to start an importing or exporting process, you should find out who else you can trade with.
Perhaps your company already has an existing trading partner, in that case you can sell or buy more. Perhaps you need to find new customers or suppliers. In both cases, a number of questions arise, both on the counterparty's stability and credibility, and on possible economic, political and cultural differences. These concerns are different for importing and exporting, so we will cover them separately over the next few paragraphs.
It is a bad idea to:
When we talk to companies importing goods from abroad, their first and biggest concern is whether the goods are delivered according to the agreed standard. There are two main things you can do to ensure this. First, you can research the supplier.
Next, make sure you negotiate the contract so that there is full agreement on what the minimum standard is and that your final price covers everything - production, packaging, transport and import taxes.
The second import-related concern has more to do with economy: Do you have the resources to fulfil your obligations? You need to ensure you have the necessary liquidity to meet your supplier’s payment deadlines.
Finally, there are more general concerns - call it the known unknowns - all the things you know could go wrong, but of which you do not necessarily have an overview. The issues may range from the manufacturer’s safety and environmental conditions to the liability for damage caused by the imported goods. These are things you should consider before importing.
We can help you succeed in importing and exporting
When you are ready to start planning for international trade, you should initially assess your business potential. It involves taking a sober and critical look at both your sales potential and your organization's readiness. Maybe using your resources for exporting or importing would take away too much focus from your core business.
If you decide to continue, you need to lay down a more detailed plan for what is going to happen and how. You can start from the following steps.
It is important to know your trading partner when importing or exporting. If you are an importer, it is nice to have some assurance that the goods are coming and can also be delivered in the future. And if you are an exporter, you will of course want to have a sense of your customer's ability to pay you.
We will often be able to help you research your counterparty with due diligence so you can get an idea of the company's financial stability and capabilities. We can also help you determine the risk you take to trade internationally. Read more about our Trade Finance products.
You should also consider how language and cultural differences can affect the relationship. You should better get to know the market and any potential trading partners.
Especially if you need to export, make sure you get to know your new market. You can benefit from market analysis as well as from talking to any contacts on the market or other companies that have tried to export to the market.
It is a good idea to:
It is a bad idea to:
Depending on your company's industry and what you trade abroad, documentation and legislation can be crucial to master. What documentation and permissions do you need and are there any customs issues you need to take care of?
We can help you on an overall level, but you may require legal assistance to make sure you do everything by the book.
We can help you succeed in importing and exporting
Modest development in home markets has pushed several companies to look for new customers and grow their markets in recent years. International business opportunities also bring risks that you should be prepared for. Our specialists will help you with payment and risk management related to your exporting and importing business.
Trading in a precarious world imposes demands especially on risk management. How to identify and protect yourself from foreign trade risks? Once you know the risks, you can prepare for them in the best possible way, with the right partners.
Risk: Buyer Credit Risk
Risk Management Tool: If you do not receive payment for the whole transaction as an advance, reduce your risk by choosing a payment method: choose your credit or debit card. Or claim a good foreign bank guarantee or a standby credit card for security.
Risk: Country and Bank Risk
Risk Management Tool: Use an export broker approved by your bank. If you want to use a bank guarantee for security, do not require the mandate guarantee that you would receive from your bank with a foreign bank counter guarantee. Confirmed standby credit is also a good option.
Risk: Prepay
Risk Management Tool: If you pay the entire amount of your purchase as an advance, do not require a pre-payment from your trading partner to get your refund if the transaction is not completed.
Risk: Country and Bank Risk
Risk Management Tool: If the policyholder or country involves a political or financial risk, the guarantee is warranted as an assignment guarantee or a confirmed standby remission.
We will help you find the right solutions to make sure you succeed in foreign trade. No refunds are made on the established payment time export bucket: it serves the exporter as an instrument for payments, finance and risk management. You can lower your availability at the shipping stage and thus change the payment time in cash easily and cheaply. Other ways of financing exports can also be found in the country of destination and depending on the size of the trade. Bank guarantees, on the other hand, are well suited as security for the various purposes of foreign trade. They are easy to use and help build trust between trading partners from different countries.
If your business wants to create growth, it is only natural that it shifts focus towards new markets. However, in order to do so, you need a systematic approach: from primary strategic considerations to risk assessment and evaluation.
Does your business extend beyond borders? We have an offering tailored to the specific needs of our international customers.
Are you ready to take your business to the next level? We've put together some advice to help you grow your business.