What To Check In An Export Contract Before Accepting
If you are a trade finance professional, you should know what to check in an export contract before accepting it. After reading this article, you’ll be able to minimize the risk of export business both for your bank and your customer. Export starts with the communication between a buyer and a seller. When they reach an agreement for sell and buy, it becomes a sales contract or an export contract. However, all export contracts are not acceptable to bankers. Bankers want to make sure that their customer can secure their interests. Mainly, they want to be sure about protecting the interest of the bank and the exporter. However, what you may see (as a banker) is that Exporters are always trying to convince you that the Buyer is excellent. But it would be best to keep in mind that export businesses run two significant risks: buyer risk and performance (exporter's) risk. Additionally, a banker must also be careful about money laundering risk and compliance risk. What Is Export ...