Financing with finesse: Effective methods for reducing risks in trade

How can I ensure that international buyers pay? How can I offer competitive payment terms without experiencing a negative impact on my working capital? What can I do if my new business partner asks me for an advance payment? 

These are common challenges in the daily business of companies and institutions active in international trade. Working with a versatile finance partner like RBI is crucial for mitigating global trade risks like:

• Counterparty and commercial risk: Non-fulfillment of contractual obligations, such as non-payment, poor quality of goods, or late delivery.
• Legal risk: Compliance with international and local laws, including sanctions and anti-money laundering regulations.
• Currency risk: Exposure to exchange rate fluctuations impacting transaction values.
• Country risk: Potential disruptions due to political instability, turmoils, or regulatory changes in the buyer’s country.
• Transport risk: Possible damage, loss or delays in the shipment of goods.

"Managing these risks necessitates extensive market knowledge, a comprehensive understanding of logistics, and familiarity with legal and regulatory environments,” notes Martina Zimmerl. “When clients lack expertise in these areas or have limitations in their risk-taking capacity, a suitable banking partner can facilitate their international expansion.”

"Particularly counterparty, legal and compliance risks can be mitigated by early involvement of an experienced banking partner," adds Evgeniya Sharkova. RBI offers to its corporate and institutional clients a comprehensive range of trade finance solutions, including all types of guarantees, letters of credit, along with related financings and FX hedging solutions. "We are also proud to be able to offer our products in both conventional and sustainable ways," emphasizes the expert. 

With RBI’s products and solutions, risks in import and export transactions can be effectively reduced. "Through our CEE & SEE network and our strong global presence in major financial markets, our clients can expect tailored solutions and top-notch trade finance expertise," states Evgeniya Sharkova. "Last but not least, RBI's solutions can support and improve the working capital position of our clients."

“Our clients can rely on harmonized trade finance services across all RBI Group subsidiaries in CEE & SEE,” adds Martina Zimmerl. “For corporate clients, we offer our Umbrella Group Guarantee Facility, ensuring standardized documentation and pricing, regardless of transacting with RBI, Raiffeisenbank Romania, or our colleagues in Serbia.” A similar offering is extended to global and regional banks, thereby leveraging RBI’s CEE & SEE network.

"Customers working with large regional or international banks can rely on the banks’ global reach, efficient currency management and effective risk mitigation through the local market knowledge in trade finance," explains Martina Zimmerl. Large trade finance banks such as RBI are knowledgeable in many different jurisdictions and can support their clients via their local trade finance advisory teams. It is also easier to comply with the different regulations in different countries with the support of a banking network - this strengthens trust and stability in international trade transactions.

In addition to its CEE & SEE subsidiaries RBI is a global trade finance provider with an extensive network of 2,000 banking partners in over 130 countries. Most of RBI's cross-border guarantees are issued directly thanks to its excellent long-term ratings of A- (Standard & Poor's) and A1 (Moody's).

“It’s not just our product offerings that set us apart; the services and advice provided by our product and relationship managers complement our trade finance solutions,” the experts say. “Through personalized advice and expert guidance, we deliver customized solutions rather than standard products, tailoring our approach to the unique needs and aspirations of each client. As a relationship bank, RBI prioritizes long-term partnerships with its customers, aiming to not only meet but exceed their expectations, fostering trust and collaboration that extends far beyond the realm of traditional banking.”