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Export finance and insurance
A key problem all exporters face is cashflow - you need to offer credit to win customers, but you also need cash to finance growth. However, banks, credit insurers and trading houses all compete to convert credit arrangements into cash.
There are a number of common short-term finance options.
Documentary credit (DC)
DC - (or a Letter of Credit as it is commonly known in many countries) is a fixed assurance from the buyer's bank in the buyer's country. It is issued on behalf of the buyer to say that payment will be made for the goods or services supplied by your business, providing you comply with all terms and conditions established by the credit.
If it is a cash contract, the DC terms will provide for payment immediately upon presentation of conforming documents to the issuing bank - ie before goods are released to the customer. Until you are certain of a new customer's credit worthiness, it is best to aim for such payment terms.
If you have offered credit, the DC terms will state when payment is due, reflecting any extended payment terms you have granted. Your bank may be prepared to provide a short-term loan, for a percentage of the DC, prior to shipment to cover the temporary shortfall. They will then collect from the proceeds of the subsequent presentation of the DC.
Factoring
A factor enables you to receive cash within a few days of invoicing, by taking on the ongoing responsibility for collecting your short-term debt. In some cases the factor will also take on a percentage of the non-payment risk. This is called non-recourse factoring and means the factoring company won't come back to you if the payer defaults.
You can learn more about this type of financing in our guide on factoring and invoice discounting: the basics.
Your bank can advise you on factoring.
Forfaiting
Forfaiting enables exporters to convert a credit sale into a cash sale. However, this is for larger projects and medium- to long-term financing.
For more information on forfaiting speak to the export finance team at UK Trade & Investment.
Credit insurance facilities
As an exporter you can also raise finance by assigning your credit-insured invoices to banks. In return the bank will offer up to 100 per cent of the insured debt as a loan.
( liyy )31 Dec,2010
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| 23996EK NACHI | 480 | 650 | 128 |
| 23292EK NACHI | 460 | 830 | 296 |