Understanding how to manage trade risks is key to successful exporting.
The export market offers excellent opportunities for Malaysian exporters. However,conducting business overseas can be complex and involve many risks. It is important for exporters to understand these risks. Understanding how to manage trade risks is key to successful exporting. As an exporter you have to find the right trade financing solution that is right for you. MATRADE is sharing some basic information on trade financing. The following trade financing/products/credit terms that are offered by local and international banks operating in Malaysia:
Exporter ships off goods to the importer before receiving payment. Payment terms vary from 30 to 90 days. The exporter is exposed to high risks on non-payment,protracted payment and insolvency of the importer.
As an exporter,you have control of the goods until you receive a legally binding acceptance from the buyer regarding their debt to you.
As an exporter,you have control of the goods until you receive payment from the importer. A bill of lading is sent through the banking system to allow the buyer to take possession of the goods.
04Unconfirmed Letter of Credit
As an exporter,you receive an undertaking from the importer’s bank to conditionally guarantee payment. Payment is based on the condition that your documentation complies with the condition stated in the letter of credit.
05Confirmed Letter of Credit
Although similar to unconfirmed Letter of credit the difference is the LC is an irrevocable undertaking by issuing bank to honour the payment obligation in the LC. In other words if the foreign bank defaults payment,the domestic bank pays you.
06Cash in Advance
the importer pays for the goods as agreed on a date before the exporter ships the goods. As an exporter,you will receive payment while still keeping control of the goods.
The World's Largest Banks Are Now Trapped
By Gary North
The subprime mortgage crisis constitutes the worst banking error in my lifetime. Nothing else comes close.
It has visibly begun to unravel. The European Central Bank on Tuesday, December 18, opened a line of credit of $500 billion to commercial banks.
The Federal Reserve System under Greenspan was the prime instigator. It forced down short-term interest rates by supplying the overnight bank-to-bank loan market with sufficient liquidity to drop the rate to 1%. This encouraged banks to make loans at low rates.
These loans were short-term loans
Banks Financing Mexico Gangs Admitted
In Wells Fargo Deal
Just before sunset on April 10, 2006, a DC-9 jet landed at the international airport in the port city of Ciudad del Carmen, 500 miles east of Mexico City. As soldiers on the ground approached the plane, the crew tried to shoo them away, saying there was a dangerous oil leak. So the troops grew suspicious and searched the jet.
They found 128 black suitcases, packed with 5.7 tons of cocaine, valued at $100 million. The stash was supposed to have been delivered from Caracas to drug traffickers in Toluca, near Mexico City, Mexican prosecutors later found
I'm beginning to think that we have been lied to
We have been brainwashed into thinking Politicians are protecting the American people. They're really protecting the interests of the largest corporations, and the wealthiest individuals in this country. That's right, We are dying for them. Big Oil (keep that foreign crude flowing, morons - we're almost done constructing the Trans-Afghani Pipeline. Too bad another 8 soldiers will be blown to pieces today)! Big banks - who promote war, as they finance the death and destruction! And let's not forget the Military-Industrial Complex - remember, Eisenhower warned us about these bastards!
The last time I looked, no one from al Qaeda is looking to do me any damage
Yuan begins trading against the rouble
SHANGHAI - China started allowing the yuan to trade against the Russian rouble in the interbank market from Monday as policymakers promote the currency's use in global trade and finance.
The move will help "facilitate bilateral trade between China and Russia and help develop yuan trade settlements," according to a statement published on the website of the China Foreign Exchange Trade System (CFETS), a subsidiary of the People's Bank of China.
The central bank calculates the daily reference rate by taking an average of quotes from commercial banks designated to act as market makers, the statement said