TradeMatch helps entrepreneurs identify export opportunities in 70 countries and 20 sectors. Which regions and market outlets are opportune? Where are the opportunities? Which countries and sectors are better to avoid? Allianz Trade's new web application brings it into focus instantly and clearly: a reference for entrepreneurs entering a new market abroad.
Entering a new market can be a vital part of your business growth strategy. You create new opportunities, you access to new customers and you safeguard your business against domestic economic stagnation.
However, international growth also involves notable risks that must be assessed and mitigated wherever possible. Business practice, legal frameworks and local culture hold many variations so that it is dangerous to assume your experience in your home market will apply elsewhere. The time spent researching and rewarding will be well rewarded.
There are many reasons your customer in an overseas market might not pay: politics, an economic shift, their banking relationships or the business culture in their market; the list goes on. One of the most important tasks for anyone working in international sales is to keep track of these factors. So information is a key tool for growing sales, an enabler for the best decisions.
A key step in building business outside your home territory is to define terms of payment for international trade that you are willing to offer. Requesting cash in advance is the safest mode of payment for international trade and good practice where the risks of non-payment are high. However, many customers cannot afford to pay in advance so these terms will limit the number of orders you receive.
To maximise the potential sales volume you may want to trade on open account terms. If so, the risks need to be recognised and backed by checks on the credit worthiness of each and every customer.
Protecting your company has never been so important than now. Especially in this crisis period, you are never safe from the default of payment or the insolvency of one of your customers. Very often bad payments and insolvencies lead to a snowball effect. This creates risks for the cash flow and profitability of your business. A large unpaid invoice can jeopardise the growth of your business or eventually lead you to insolvency.
With experienced resources of over 200 countries, we can help you plan your work with employers across the world, in any sector. Backed by the financial strength and technical expertise of a global insurer, our knowledge of local conditions is unrivalled. You can develop your business abroad with confidence.
A trade credit insurance protects your business against the risks of defaults of payment and insolvencies of your customers:
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