Prevention plan
1. Ask the local credit bureau whether the other party has maliciously breached the contract or maliciously refused to receive information.
2. Find local experts (law, business negotiation, etc. ) so as to get fair and reasonable treatment and minimize losses.
2. The risk of slow payment due to insolvency. After receiving the goods, the buyer can't make normal payment on the date stipulated in the sales agreement.
Prevention plan
1. Check the credit information of the buyer's company in advance to judge whether its financial situation is stable.
2. Be familiar with relevant financial knowledge and indicators, and recommend paying attention to financial indicators-quick ratio (quick assets/current liabilities).
3. In import and export transactions, cargo transportation may face the risks of pollution, congestion, accidents, vandalism, theft, loss and damage. The lack of transportation capacity caused by the epidemic may also lead to an increase in transportation risks.
Prevention plan
Inquire about the types of cargo insurance and purchase transportation cargo insurance according to the situation.
4. Political risks
(1) Risks caused by war, civil strife or revolution;
(2) Foreign exchange cannot be obtained immediately, and the seller needs to wait for the distribution of foreign exchange;
(3) The government may take some unexpected temporary actions to stop payment.
Prevention plan
1. Always pay attention to foreign political information and improve political sensitivity.
2. Buy relevant insurance (such as war insurance and strike insurance) to counter the losses caused by political changes.
5. The documents submitted to the negotiating bank after shipment are inconsistent, the product attributes are contrary to the products stipulated in the contract, and the poor quality of the documents may lead to risks.
Prevention plan
1. Check the requirements and details of the customs bill of lading of the other country in advance to ensure that the documents are complete, consistent and qualified when the goods arrive.
2. Before producing the product, carefully check the contract terms (type, model, etc.). ) to prevent unqualified goods.
6. The seller's failure to carefully prepare and complete the required documents may lead to the delay in customs clearance of the goods, delay in obtaining foreign exchange and even heavy penalties. Written documents may include transportation, packaging and labeling requirements, import license and foreign exchange approval before import.
Prevention plan
1. The seller shall know the transportation, packaging and marking regulations of the buyer's country in advance and prepare written documents according to the regulations.
2. Obtain the import license and foreign exchange approval from the other country before export.
7. When the seller receives a currency other than the domestic currency, it may cause the risk of exchange rate depreciation.
Prevention plan
1. Both parties agree to shorten the billing period.
Both parties agree to use RMB as the settlement currency to minimize foreign exchange risks.
8. Delayed payment or even no payment, resulting in bad debts.
Prevention plan
Check the other party's credit information in advance, whether there has been a risk of "default" and whether the company has broken its promise. If so, stop the transaction in time.
9. Buyers are unwilling to share enterprise information, or the information is inaccurate.
Prevention plan
Look for local credit reporting agencies to get more business information.
10. For sellers, the stability of raw materials is the basis of commodity stability, and the change of raw materials in the upstream of supply chain directly affects the quantity, quality and price of products.
preventive measure
The seller should always pay attention to the industry market in the upstream of the supply chain. If the quantity and price of raw materials change greatly, it is necessary to hoard a large number of raw materials in advance to prevent them from being shipped out within the specified time.