by Emmanuel Besserve
Letters of Credit are one of the most common payment methods used in trade finance and usually considered as one of the safest way for a seller (located in one country) to receive payment from a buyer (located in another country).
Here under is a list of the most frequent exemptions met in Tax Free Zone or Trade free Zone:
by Emmanuel Besserve
When you engage in international trading, it is not uncommon to receive payment in one currency, and then have a need to convert it to the currency of your home country. The global business climate makes understanding exchange rate necessary. To monitor your exposure and protect yourself from losses, it is possible to use a number of currency tools to enhance your profitability in international trading.
You've taken your business global. You've researched markets in other parts of the world, promoted your products and services, and located customers and distributors. You've negotiated prices and terms, put together all the export documentation, and made delivery. You have successfully entered the international commerce arena. Now you just need to get paid so you can maintain your cash flow, generate more sales and continue the growth of your business.
These days, it seems like defaults are more common than on-time payments, and business owners must think about credit risk before beginning an international transaction. One of the ways a business can protect itself is by ordering a company credit report for each vendor or merchant.
Export credit agencies are institutions set up to encourage international trade by providing financing to exporters. The financing can take the form of loans or credits, credit insurance and guarantees. The aim of export credit agencies is to stimulate their respective economies by helping exporters win business abroad and carry out overseas contracts with confidence. Often with the backing of the government, they fill a financing gap and cover risks that the commercial market would not otherwise be willing to take, which would result in a loss of exports. Export credit agencies therefore support governments' efforts to promote domestic economic growth and expansion, protect and create employment, and maintain their trade balance by building closer ties and diplomatic relations with trade partners around the world.
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