Tips for SMEs: How do you export with confidence? | Article – HSBC VisionGo
Because the future is not always as expected, we predict trade and credit risk today, to protect cash flow tomorrow.
SMEs play an integral role in the global economy, stimulating employment, productivity and competitiveness in emerging and developed markets alike. We understand that business expansion is a big step for SMEs; you will need adequate resources in terms of money and labour, and confidence. It is important to be able to predict and manage the risks well.
Exports are an exciting part of business; they show there is a demand for your products or services overseas and can drive your expansion. We understand that those businesses are not always confident about exporting, and that is why they would like to know how to manage the associated risks. Working with new countries, mean dealing with new cultures, rules and regulations to follow but they also offer the opportunity to access new markets and customers.
Hence, we would like to go over three main tips and best practices to help protect your exports while focusing on expansion. Our main tips today cover:
- Do your country and customer research.
- That means identifying the main risks linked to export in that country. This could include risks of non-payment, foreign exchange risk or political risk.
- Find out the specifics for the country of export as many have very specific export/import requirements.
- Being prepared for these make a big difference when trying to recover payment.
- Make sure your paperwork is accurate.
- If you have not done so already, get your terms and conditions checked by a lawyer who has export and import experience. Never forget to put the delayed payment terms in the contract clause.
- Maximise your chances to secure payment.
- Make sure you understand the local legal procedures and linguistic aspects to anticipate non-payment.
- Know how to conduct an out of court negotiation.
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