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.

Perspectives  ·    ·  2 mins read

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: 

  1. 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.
  2. 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. 
  3. 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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These assessments are, as always, subject to the disclaimer provided below. 
The statements contained herein may include prospects, statements of future expectations and other forward -looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such forward-looking statements. 
Such deviations may arise due to, without l imitation, (i) changes of the general economic conditions and competitive situation, particularly in the Allianz Group's core business and core markets, (ii) performance of financial markets (particularly market volatility, liquidity and credit events), (i ii) frequency and severity of insured loss events, including from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of c redit defaults, (vii) interest rate levels, (viii) currency exchange rates including the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions, including related integration issues, and reorg anization measures, and (xi) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist act ivities and their consequences. 
The company assumes no obligation to update any information or forward-looking statement contained herein, save for any information required to be disclosed by law.
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