Economic & Trade Risk Insights
 

By 2030, India will be the second-largest economy in the Asia-Pacific region as strong macro-fundamentals and an improving business environment drive investment-led growth.

Exporting goods to other countries can be a source of significant growth for businesses in the form of new markets and opportunities. In the process, these businesses are likely to face new risks, especially when it comes to managing payments, that they may not have encountered or experienced before.   With careful management, companies can understand the impact new risks are likely to have on the business and how to mitigate these business risks on their own or with the help of third parties, like credit insurers.   Not all of these risks will have the same significance. Some payment risks can lead to unexpected levels of bad debt that have devastating consequences for a business. Other situations involve risks that only lead to short-term concerns, such as sporadic overdues in payment.   Unfortunately, it is not always immediately clear which risks can lead to which set of consequences. Therefore, managing an export business begins with a clear recognition and understanding of all of the risks that business faces and the level of those risks.   With that insight, companies will be able to monitor and manage those risks as needed. It is when companies do not understand or recognize the inherent risks of export businesses that real problems occur. Looking the other way and hoping for the best is not a viable export risk management strategy.   Risks that catch business leaders by surprise can be particularly devastating to business performance and profitability. To avoid this, companies can leverage a range of tools and solutions to manage the risks in trading, export business, credit insurance, and stricter payment terms for higher risk customers. Learn about trade risks involved in exporting and how to manage them.

This article explores how outstanding balances impact business health in multifaceted ways, from liquidity and working capital to relationships and growth.

Trade credit, or an agreement that your customer can purchase goods or services from you and pay at a later date, is a normal process in B2B transactions. It’s an effective tool to encourage sales and stimulate business growth.   Yet, any time you invoice clients at a later date after providing goods or services, you expose your business to the risk of late payment or default. This can disrupt your cash flow, the lifeblood of your business.   Determining customer creditworthiness before you extend credit is an effective way to reduce your financial risk. Read on to learn the best practices and important resources to help you understand how to assess customer creditworthiness.   To protect your business from late payment or nonpayment on invoices, it is important to use the right tools to thoroughly check the creditworthiness of customers before you extend credit. Here are six ways to determine creditworthiness of potential customers.

Learn about bad debt, including its causes and available remedies, how to collect them, and how to prevent them in the future. Protect account receivables.

Business-to-business (B2B) transactions often involve large amounts of money, and companies are always looking for ways to increase their average deal size. Here are some strategies that can help you achieve this goal: