Export Finance
Designing of cost effective global export finance strategy
With the rapid development of telecommunication, transportation and computer technology, cross-border trade business has not been easier. The conventional way of mitigating payment risks by means of standby letters of credit, documentary letters of credit (L/C) or confirmed letters of credit are common in facilitating international trade. Other means of mitigating payment risks involve the use of export credit agencies and private insurance companies.
Using letters of credit to mitigate payment risks can be costly and labor intensive. Exporters still bear the burden of non-payment risk from the time of shipment, up to the time of receiving payments from the bank. Ensuring different types of shipping documents are in compliant to the terms and conditions of letters of credit is technical and manual. It also meant delay and exposure of documetary risk in receiving payment for goods or services rendered.
With genuine understanding of how international shipments and payments are being affected in the global finance and payment value chain, Sycnetix advisors are happy to work with its clients in custom tailoring cost effective global export finance and payment strategies; helping its clients to optimize liquidity, unlock significant working capital trapped on the balance sheet and improve operational efficiencies.
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