Russia-Ukraine War Hits Trade Finance Hard - Says World Bank According to the World Bank, the GDP (Gross Domestic Product) of Ukraine will have shrunk by around 35%. A further downfall is also expected for 2023, as the comprehensive effects of Russia’s war on the economy are visible. Apparently, the media across the world has properly covered the massive disruptions caused to supply chains including the transportation of Ukrainian grain through Black Sea ports, where Moscow constantly broke guidelines permitting exports to distress customers abroad. Now, with the arrival of winter, Russia’s targeting of Ukraine’s energy infrastructure has led the population of the country in chilling darkness and immensely disrupted businesses. Power cuts have caused digital point-of-sale systems to be inconsistent, compelling an extensive return to cash systems. Regular business processes are now loaded with vulnerability. “We have been forced to continue our works without electricity for 12 hours a day, and sometimes more, with four hours of power supply followed by four of none (being) normal,” says Serheii Kostogryz, head of the Trade Finance and Factoring Department at Raiffeisen Bank in Kyiv. He further added that 40% of the staff presently operates remotely. “The continuity in business operations is difficult to keep up with when your utmost priority is to keep your staff safe and knowing you might all soon have to rush to the basement,” he stated. “Till today, we handled it successfully - clients can rely upon us 24x7.” Read more: https://www.emeriobanque.com/news/russia-ukraine-war-hits-trade-finance-hard #TradeFinanceHard #WorldBank #tradefinance #tradefinanceservice #corporatetradefinance #lettersofcredit #exportfinancing

Struggling With Late Payments From Buyers Abroad? Here’s How To Deal With It Running an international trade is a tough nut to crack especially for exporters as they are surrounded by a plethora of risks associated with overseas trade. On one hand, they need to take care of managing an efficient working capital to ensure fund availability to further finish the manufacturing process. While on the other hand, they don’t know whether they would get paid on time from their buyers abroad or not. This is one of the biggest risks exporters face carrying out an international transaction. Why Can Payments Be Delayed? There can be many reasons why a payment may be late on the buyer's hand in international trade. The answer can be a buyer’s incapability to pay the exporter due to many reasons such as: 1. They lack enough liquid money to pay the invoice 2. Bankruptcy 3. Dispute with the exporter over shipped items 4. Difficulty in selling the goods further etc. Ways To Cope-Up With Late Payments From Foreign Buyers You may be thinking, “It seems kind of difficult to avoid late payments in global trade seeing the above-mentioned reasons.” The buyer can be unpredictable at any time and the exporter's concern about being paid late is genuine. So, what can be done to eliminate this trade complexity? We have got the answer. This is where the exporters need to be aware of common export payment methods before agreeing with a foreign buyer. Picking the correct one and using them efficiently can decrease delayed payments to a certain level. Read more: https://axioscreditbank.wordpress.com/2022/05/04/struggling-with-late-payments-from-buyers-abroad-heres-how-to-deal-with-it/ #internationaltrade #exportfinancing #exporttradefinanceservice #importtradefinanceservice #importfinancing #tradefinanceinstrument