Import And Export Loans For Effective Risk Management

risk managementIn every business, whether it’s just starting out or have been running for a while now, risks are always a possibility. This is why it is important to have excellent risk management practices that can help reduce the chances of undesirable events from happening.

If you are managing or are engaged in international trading in importing or exporting products, being aware of and prepare different ways to mitigate them to be able to get the full advantage of the benefits. One of the best ways that you can avoid such risk is true import and export loans which will allow exporters to trade an open account terms without risk.

What are the benefits of import and export loans?

  • Import loans can improve your cash flow by bridging the gap of paying and receiving payment from the items.
  • With better payment terms, you can increase your bargaining powers with overseas suppliers.
  • Easier and faster way of paying your suppliers, thereby having good business credit rating and reputation.

What are the types of import and export loans?

There are two types of import and export loans: loan against import and clean import loan. The latter is a type of loan that only relies on the supplier invoice and will not require you to pay on Documentary credit or Documentary Collection. This type of loan will provide the financing to enable you to pay for the imported goods which will also cover the period up to the point of sale.

Loan against import on the other hand will use the goods as collateral and are released to you under trust receipts. Under these circumstances the products or goods will serve as collateral which means they will belong to the bank until the time you pay back the loan.

While other loans depend on the company’s credit history before being approved, import and export loans are only based on the ordered goods or the proof of transaction. However, there will still be some other factors that the bank will consider before they allow a company to secure loans. This may include the following criteria:

  • Should be in the business for at least a year
  • Have done other or similar transactions in the past
  • Credibility of the transaction
  • Ability of the company to make good payments

There are other important factors that will affect the approval of your loan, however, you will generally have some leeway in negotiating the loan terms and fees. You will need to pay some due diligence to your lender. This will also serve you great in the future when you need to apply for another loan. Click here to learn more about risk management.

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Crucial Banking Solutions for Business Growth and Expansion

1Starting a business demands much from its owners — time, energy, resources, manpower, and more. Developing a product or service that will be valued by consumers is half the battle; your focus should now be on devising a production process, securing a physical location or online space, building partnerships with suppliers or vendors, creating a marketing campaign, researching your market, and actually getting your offerings out to the public. And on top of it all, you have to obtain the capital to sustainably fund all aspects of your operations.

With hard work, dedication and sufficient resources, a startup can evolve to become a trusted name within its industry. But of course, it won’t be enough to break even or to remain successful in a single location or with the current company size. If you find that your product or service has become the preferred option over your competitors’, or if you’ve gained a substantial following even from consumers abroad, then the time may be right to think about business growth and expansion.

Getting the right financial support

If expansion is the logical next step for the business you’ve worked hard to build, then you will need the appropriate level of financial support to see you through this important evolution.

You’ll need to partner with a bank that can help you devise a solid business and financial plan. The growth and expansion may mean taking in a larger staff, or ordering raw materials in larger quantities, or shipping products out of the country. You must have the means to fund these changes and to beat the corresponding risks.

Here are examples of solutions that your trusted bank can offer to fuel your business growth and expansion:

Import and export finance

If taking your products abroad is part of your plans, then you will need a financial partner who can help you with international trading requirements. Commercial banking professionals who are well-versed in local markets from different parts of the globe can help you assess the existing economic conditions and relevant market risks. They can offer export loans that can help you improve cash flow and bridge the gap between the shipment of your goods and the arrival of the customers’ payments.

Likewise, with import finance, a reputable bank can give you access to working capital as well as help protect your bottom line and maintain your cash flow as you settle matters with suppliers and payments from your buyers.

In addition, your bank can use export documentary credits to ensure that you will be paid for the products you export even if your customers cannot pay on time or at all.

Guarantees

Since you are a business that is still finding its feet in a much larger playing field, you may not have a solid and established relationship yet with your chosen suppliers or buyers. The bank can assist in negotiating favourable terms — your needs will be addressed and, at the same time, your buyers and suppliers will be protected in the event of non-performance under a contract.

The bank can also advise you to secure financial and non-financial guarantees or take full advantage of standby letters of credit so you can conduct business with confidence even in still uncharted environments.

 

The Top 4 Reasons Why Businesses Should Consider Account Receivable Financing

Account receivable financing, also known as business factoring, is a particular type of asset financing option wherein a company uses its account receivables as a kind of collateral which can be effectively exchanged for cash. Account receivable financing is considered by many as the best financing solution for any business, regardless of its type and size.

Perks Offered By Accounts Receivable Financing

leading global commercial bank and financial institutionBelow are the top reasons why businesses should consider business factoring as a financing option:

• It can help grow your business. Factoring will increase your company’s working capital and would enable you to expand your business operations. And as you get more customers or clients, your business will grow, and this will also improve your factoring account receivable finances. As such, a beneficial circle of cash, customers, and growth would be created – something that all businesses want to experience or attain.

• It enables you to increase the capital of your business without incurring more debts. If you opt for accounts receivable financing, you are not taking out a business loan. In fact, you will be using your company’s biggest asset, your invoices and accounts receivables, to add working capital to your business. In addition, this financing option does not come with interest rates, fees, closing costs, and other hidden charges.

trusted global commercial bank and financial institution• You can be eligible for this financing solution even if your business even has a low credit score. Business loans and credit cards depend greatly on your company’s credit score. Business factoring, on the other hand, is based on the financial strength and stability of your customers rather than your own personal or your company’s credit score. This is because establishments that provide this financing option are more concerned about the credit reputation and credit worthiness of your customers more than yours. This is due to the fact that it is your customer who has to pay ultimately to the factoring company.

• It allows you to get quick cash for your business within 24 hours. Lastly, with account receivables factoring, you can receive cash the same day instead of waiting for 30, 60, or 90 days for your invoice to be paid. In general, as soon as you send your invoices or accounts receivable to the factoring company, they will immediately verify the invoices. If you have a list of solid of customers or clients, the financing company will deposit anywhere between 70 and 90% of the face value of the invoice directly into your bank account.

About the Author:

Geraldine Black is a business financing advisor. He recommends reading more about account receivable financing on HSBC UAE’s website.

What To Consider When Looking For The Best International Roaming Plans

4More and more people today are already into traveling. Indeed, traveling has become very popular in this generation especially because of the many affordable travel deals offered these days. Even the young generation has already started traveling on their own to several different parts of the globe.

And because of the easy overseas communication system, it becomes even easier for many people to travel away from their friends and family. Knowing that they can always talk to their family and hear their voices anytime they want through their phones, it becomes really comforting to travel and explore other places. As long as you have your mobile phone with you equipped with an international roaming plan, you can always get in touch with your friends and family from across the globe.

So if you are planning to get an international roaming plan, you need to know the things you need to consider. There are actually a lot of choices for you, but when looking for the best international roaming plans, here are a few factors you should put into consideration.

  • This should be the first thing that you will have to put on your list. Set a budget intended for a roaming plan so you can narrow down your choice and cross out those plans that are priced way higher than your set budget. Know the rates it would cost you for calling, texting and turning on mobile data.
  • 3Package inclusions. Know the package inclusions as well. Aside from the regular services covered by the plan you have chosen, know what other things are included. If there are add-ons, know whether or not you can benefit from it. And if not, try checking if you can have it replaced with an add-on you can actually use.
  • Know what else is covered in your plan when it comes to flexibility. What if you phone died? Can you still use the plan on other mobile devices you have? This is very important since you will never really know what may happen when you are traveling.
  • There are some international roaming plans that do not have coverage in the area you are planning to contact. Before you decide which international roaming plan to get, always check its network quality, the coverage of the connectivity in your intended destination and the network frequencies.

These are among the most important things to consider when choosing from among the best international roaming plans to get while traveling. Make sure you choose the one that provides the best service suitable for your needs.

Giving Employee Incentives To Boost Business Productivity

9One of the most common problems that every business owner or employer is facing today is the lack of motivation for their workers or employees. And this can greatly affect the business productivity. Although most employees show enthusiasm at work, this can only last for a few months. And one of the reasons why this is happening is because employees no longer feel their work is appreciated. Work becomes boring and a routine and employees stop striving to be the best at work simply because they no longer feel the need to do so since their efforts are not recognized anyway. And when all employees become this stagnant at work, it will be very hard for a business to be successful. Hence, ensuring your employees are appreciated and recognized is very important.

One of the ways to show your appreciation to employees for their contribution at work is by giving employee incentives. There are actually a lot of ways to give employees incentives. Most of the time, this can be performance-based. If an employee is performing excellently at work, you can give incentives which can be based on the rating of your employee’s performance for the whole month. You can also do this on a quarterly basis. This way, it will become a sort of competition among your employees which will drive them to be more effective at work.

Employee incentives may come in a form of cash, coupons or gift certificates. You can organize a competition among the different teams or departments in your company. Monthly or quarterly, pick the best performing team and stage a awards program which will recognize each employee who has been showing exemplary service to the company and as a reward, give them cash incentives, coupons or gift certificates.

Doing this will not only show your appreciation to those who are doing their best for the company but will even motivate other employees who not doing well at work to strive even more to become the best at what they do as well. It will drive more motivation which will also drive productivity. And this is something that your company will greatly benefit.

Giving employee incentives will not only drive more motivation for your employees to work hard but will also cultivate a happy and lively working environment. It will drive away boredom which is very common in a workplace with no employee incentive programs and awards programs.

Types of Loans for Business Growth and Expansion

HSBCAre you looking to expand your business? That means you’ll have to spend money. Even if business growth and expansion will bring in bigger profits, your cash flow is still going to take a hit unless you choose to look beyond the business coffers. The usual solution is to turn to a financial institution for funding assistance.

What are the different finance solutions offered for business growth and expansion?

•    Account receivable financing – This is a form of financing that takes pledged receivables as security. Using receivables that are less than 60 to 90 days old as security can give the borrower up to 90 per cent in advance from the lender, but more typically, only about 75 per cent.
•    Bridge loan – This is a way for the borrower to create cash flow over brief periods. It bridges the cash-strapped gap between the delivery of goods or completion of a project and its payment.
•    Demand loan – This is a short-term loan that has a floating rate and no fixed payments. It can be paid off early without the borrower incurring penalty. It is mainly defined by the lender’s ability to demand full payment any time. It’s not recommended for the peaks-and-valleys type of business.
•    Inventory financing – This type of loan takes inventory pledged as security, but the borrower usually doesn’t get more than 50 per cent of his inventory’s value.
•    Line of credit – This refers to an agreement establishing the maximum amount that the borrower may get from the lender. It comes with conditions — usually, stipulations on how and when the loan against the line of credit is to be paid.
HSBC•    Operating loan – Usually included in the line of credit, this is a loan used for short-term financing to promote cash flow and take care of the day-to-day costs of operation.
•    Subordinated debt – This is a special kind of financing option involving the acceptance of a reduced interest rate by the lender in exchange for equity participation.
•    Term loan – This is a medium- or long-term type of loan used to finance purchases of fixed assets like equipment, real estate, or property renovations.

These are just some of your options for coming up with the funds necessary to grow and develop your business. If you decide to go for a loan, make sure that you transact with an institution that is staffed with finance specialists who can advise you on your best option. Know more about business growth and expansion services on this site.

Getting Help From The Experts When Starting a Recruitment Business

3When starting a recruitment business, getting help from the experts and being equipped with the fundamental principles is very important. This business is much like any other enterprise and the most basic principles in launching a business apply. However, to be able to know these principles and how to apply them, seeking help from the experts is a very smart move and a huge advantage.

Know the importance of identifying and understanding core values. These values will ensure that daily processes are accomplished properly so that the business can achieve longevity in the industry. It also dictates the culture in the workplace so there can be harmony among employees.

Experts also say that one crucial element of a recruitment business is the commitment to a high level of customer service. Training is absolutely necessary; this way, everything from sourcing, interviewing and reference checking to matching candidates with the right clients is done satisfactorily to achieve the best results. There is no other way to thrive in this field if customer service is not a top priority. Therefore, it is best to make sure that every member of the organisation is trained thoroughly to be able to deliver the highest level of service that effectively meets the clients’ expectations. This should be among the top factors that one should remember when starting a recruitment business.

Additionally, it is best to not think about what you will earn because this can create unnecessary temptations that can diminish the good image and reputation of the business. Make every member of the organisation understand that only with good work will money flow into the business naturally. Set clearly defined roles to create a seamless operation. Explain each task to be accomplished by every member in detail so that they can focus better and be more productive. There surely will be no confusion if all employees know what they should do and what is expected of them. This will also make all processes a lot easier and simpler.

Indeed, getting professionals with expertise to assist your business is a smart choice. Make sure you have a lawyer and an accountant to help you. A lawyer will make sure that your business is compliant with the legalities surrounding your industry; meanwhile, an accountant will help you stay on top of your financial responsibilities. These two professionals are necessary to ensure success in starting a recruitment business.