Whilst nobody would disagree that it has been extraordinarily tough for business and in particular SME’s since 2008, the fact remains that the insane optimism of entrepreneurs has shone through the financial mire and many thousands of new ventures have been started and many flourished.
Those entrepreneurs who take the plunge into new ventures are an inspiration for everybody and should be acknowledged as such. They take the help of trade finance services. Equally those businesses that have survived the horrors of the last six years offer us stark lessons about how resilience, perseverance and sheer hard work can achieve remarkable things. But what is it that makes one idea or business prosper and another fail? There are clearly countless reasons but one of the keys factors, in my opinion, is ensuring that the venture fits within the economic backdrop that exists at the time; don’t fight the times but work with what is in demand and what resources are available.
Businesses have always been good at finding corporate finance services and niche markets for their specialized products, as we have an abundance of creative entrepreneurs. This is exactly what the current economic challenges demand; the world of finance needs to support them.
Advantages of Exporting
One of the great advantages of being an exporting business based is that there are a number of initiatives and organizations set up specifically to assist with export. They set up a virtual office in Switzerland.
It is vitally important that when a business is looking to enter new markets and territories that they understand the cultural, legal and social differences within that area. Whilst it is one of the great achievements of modern times to have universal procedures and documentation for world trade, it is still important to have practical help to guide you through the difference of local markets. They also set up a virtual office in Zug. This is where the knowledge of groups such as Switzerland and the International Network is beneficial; Switzerland’s Embassy’s not only given knowledge and experience but also provide vital confidence when pitching for and winning business overseas.
Once the hard-won contract is secured organizations such ECGD can help with insurance products to help guarantee payments with the help of commodity trade finance. Unfortunately, some of these products have not been completely thought through and in my experience need a reasonable amount of work to get them right in a number of situations. The ECGD is willing to help adapt the products if they are asked the right questions and perhaps more importantly provided with the right answer.
Factoring and Invoice discounting
Many businesses use factoring and invoice discounting as it’s a very good service when used in the right situations and with trade commodity finance. It really only comes into play when the invoice has been raised and goods delivered. This can become a challenge when the end customer is overseas.
Many Switzerland invoice financiers do not offer their services for debts that are due from overseas entities. In these instances, one of the few total solutions is trade finance. This allows a client, who has won a contract overseas to supply finished goods to fund the complete supply chain. The risk is partly managed by owning the goods ordered rather than lending money.