Export

As an exporter, there is always a chance that your customers will not pay, or will not pay on time. Moreover, a large special order involves additional risks because you have no guarantee that your product will ultimately be purchased. Unfortunately, advance payment is not always possible, but there are other options that offer you more security as an exporter. These include payment guarantees, debt insurance or Letters of Credit.

If an order of goods is damaged en route or is delivered late the consequences can be very problematic. You should therefore use standard international delivery conditions (Incoterms) from the International Chamber of Commerce, which establish the responsibilities of the buyer and the seller. You can then evaluate your transport risk and how you want to insure this.

Find out more on the website of the International Chamber of Commerce, Iccwbo.org

When trading outside the EU, you may have to deal with foreign currency. The exchange rates between the euro and foreign currencies are constantly changing throughout the day. Create more security for your company and manage currency risks. A variety of currency risk products is available to help you do this. For exporters, a currency forward transaction for example can offer protection against future exchange rate movements by setting the exchange rate now for amounts in foreign currency that have not yet been received.

To what extent are you liable for the products you supply? Other countries often have their own approach to product liability and the size of potential claims. Your account manager is in contact with our International Desks, which have specialist knowledge about the country you are doing business with. Together they can provide you with suitable advice on how to arrange proper cover for the risks inherent in your company situation.

It is a good idea to find out about the political and economic stability of the country you are going to export to. The lead time for international trade transactions is often longer than for domestic transactions. A country’s situation may change in the meantime, due to natural disaster, war or economic crisis, for instance, as a result of which your customer may no longer be able to pay you because no payments can be made.

You should also assess the economic situation of the banks involved in your trade transactions, because your customer may for example have money in an account at a bank which is failing, or because a foreign bank agrees a commitment with you, such as a payment guarantee, which it may not be able to fulfil.

Finance

• extra liquidity available immediately
• lower outstanding debtor balance
• improved cash flow

Long-term receivables from customers affect your need for working capital. Debtor finance means you no longer have to wait for payments, because the entire amount due from your customers is made available to you as pre-finance. This makes it simple to offer supplier credit and still optimise your working capital management.

You are eligible for debtor finance if:

• your company is established in the Netherlands
• your revenue is at least € 1.500.000
• your company has a B2B focus
• your company is subject to Dutch law

If you would like to find out whether debtor finance is suitable for you, your account manager can advise you.

You export valuable capital goods and your customer wants to spread the payment over a number of years. If you are not willing or able to wait so long for payment, it is possible that the deal will fall through. In these cases you can use export finance. Your customer will receive finance in order to pay the costs of the import order and you as well.

These payment options allow you to transfer money quickly and safely inside and outside Europe.

Read more here

You can also collect your European payments using a euro collection contract. This gives you more influence over when you receive your payments.

Documentary payment products can give you slightly more security, for example if you do not know the customer very well yet. You have the choice between:

• Documentary collection: your buyer only receives your goods if he has instructed his bank to pay or accept your delivery documents.
• Letter of credit: your buyer's bank undertakes to pay you if you comply with the conditions described in the Letter of credit.

Read more about documentary payment

A foreign currency account is a current account with which you can receive and pay foreign currency. Incoming amounts in a foreign currency are automatically booked to this account. You can put temporary surpluses in a Foreign Currency Deposit. You can also exchange temporary currency if, for example, you have a surplus in one currency and a surplus in another.

Read more about foreign currency accounts (in Dutch)