Without trade finance, the United States will not have Indian spices, clothes or jewelry. Or Apple's iPhone in China, far less than any other international product of its origin.
In fact, according to Investopedia, the World Trade Organization [WTO] estimates that international trade has increased by 80%-90% due to trade finance.
To this end, companies need to incorporate trade finance into their business development strategies.
How did you do it? Learn how to incorporate trade finance into your business development strategy.
Inland trade finance into market penetration and market development
Market penetration and market development are key components of business development strategies. Market development involves selling more services or products to repeat customers.
While market penetration is expanding your products or services to other cities and provinces, it may involve inland trade financing. Because you may need to renegotiate local and provincial trade agreements.
For example, suppose you sell jewelry. Companies from neighboring cities can buy your jewelry and sell it to customers.
This customer has a long history. And know that your products are selling quickly in your customer store. In this case, you can suggest selling more jewelry to customers at a volume price.
After the negotiation, the customer agrees. However, although you have had a long and positive history with your customers, customers may not be willing to pay you before you export jewelry.
This is where the trade financier or banking institution enters and provides a letter of credit promising that you will export the jewelry after payment.
Consider the internet and the Brick-and-Mortar store
If you have already sold more products or services to your customers, maybe it is time to branch to another channel, such as the Internet?
If you run a successful e-commerce store, maybe it's time to open a physical store?
This way, your customers can purchase your products in more places.
Especially in physical stores, trade finance can help you ensure new import and export trade transactions – especially when it comes to multiple currencies.
Create new products or services for repeat and new customers
For duplicate customers, you double the number of products that are repeatedly imported by the client.
And, for new customers, your new product or service will expand your customer base. Before jumping to a new customer, it's important to first create a new product for a repeating customer, as this creates more risk.
Similarly, trade finance can help foster more trust during this growth period. Since trade finance institutions or banking institutions can create letters of credit, the terms that importers and exporters must comply with are listed.
Final thoughts about your business development strategy
Knowing that there will be no growth in a day; it is increasingly difficult for companies to penetrate the market and provide new products to new customers.
This is why we recommend that you grow slowly. However, be aware that trade finance may help increase the number of customers you trade with, no matter where they are.
What do you think of trade finance? How does it help your business? Share your thoughts, opinions and responses with us.Click here!The Attorney's Guide To Credit Repair (view mobile). Personal Loans US,click here! Installment Loans, Click here! Auto Title Loans C,lick here!