
1. Shop around
Fully explore the finance options available – consider funding solutions such as export factoring, a comprehensive funding and credit management facility providing businesses involved in exporting with an immediate injection of cash against the value of outstanding overseas customer invoices2. Research thoroughly
Trading with geographically-distanced organisations could throw up a number of challenges. Always carry out a credit check on potential customers and make sure you have accurate and up-to-date intelligence on their financial situation.3. Economic conditions
Understanding regional economic conditions is essential. It is important to establish whether you or your customers will absorb any hidden costs such as fluctuations in interest rates or exchange rates and increases in VAT and that you understand the impact these factors may have on your pricing structure and your profit.4. Local legislation
5. Overcoming the language barrier
If you trade with an organisation based in a non-English speaking country, language barriers can prove a major hurdle to overcome. Have an expert in-house multi-lingual credit management team on hand to support the collection of overseas customer payments.6. Assess the level of risk
Establish and agree payment terms and payment methods for overseas customers in advance and assess the level of risk that trading with them might entail.7. Protect yourself against non-payment
8. Clear lines of communication
Send accurate invoices, statements and reminders for payment to the right person, at the right place, at the right time and state clearly the date payment is due. Also consider using the services of a specialist factoring company to manage your credit management and collections. Andy Meadwell is international trade finance spokesperson for Bibby Financial Services Picture source Share this story