Managing import and export risk

International trading opens up potentially lucrative new marketplaces in which to do business and allows you to connect with suppliers and manufacturers that may be more cost effective. Trading overseas, however, does present a number of risks that you need to guard against.  Fluctuations in the exchange rate is an obvious risk facing importers and exporters but dealing with foreign customers and suppliers presents a number of challenges that need to be managed.

Importers

As an importer, your objectives should be to defer payment for as long as possible, receive your goods before paying for them, finance the cash flow gap between paying for the goods and being paid by your local customers, and reduce the risk of fraudulent suppliers or trading in unfamiliar markets.

Find out more about the types of importing risk and strategies to mitigate them to protect your business.

Exporters

As an exporter, your objectives should be to receive payment for your goods as soon as possible, keep control of your goods until you’ve been paid, finance the cash flow gap between investing in the manufacture or purchase of goods and being paid for them, and reduce the risk of bad debts or fraudulent buyers.

Find out more about the types of exporting risk and strategies to mitigate them to protect your business.

• Important information
  As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. View our Financial Services Guide (PDF 56kb).
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