Customer Risks

Can they / will they pay? Exporters should find out everything they can about their buyers. Banks can help by contacting the buyer's bank for a reference. There are many commercial organisations that can provide credit information at relatively little cost. Does the exporter have any local contacts or agents who might be prepared to find out what they can?

On the basis of the above information, the exporter can start to think about his stance in terms of the payment risk ladder .

Country Risks

Economic, financial and political stability - at a aational as well as financial institutional level;

Foreign Exchange availability and volatility - an exporter's UK bank should be able to assist

Import restrictions/tariffs - Are there any?

If the country has a habit of changing rules regularly or quickly?

 

( liyy )09 Feb,2011

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