Opportunities and Risks in Export Business: Successful international trade with RBI's expertise
International trade and export business offer enormous opportunities for companies. However, these opportunities also come with risks, such as non-payment, goods that do not meet the agreed conditions or delayed deliveries. We talked to two experts from Raiffeisen Bank International (RBI), Sabine Koszteczky, Head of Trade Finance, and Sanin Merdžan, Head of Export Finance Sales. They explain how counterparty risk tools and tailor-made financing solutions can help companies operate safely and successfully in international trade.
Ms Koszteczky, Mr Merdžan, international trade and export business offer many opportunities, but also harbour risks. How can companies protect themselves?
Sanin Merdžan: Recent years have shown that the risks associated with international trade have increased. The COVID-19 pandemic exposed weaknesses in supply chains, and geopolitical tensions have added to the uncertainties.
Sabine Koszteczky: Geopolitical instability can disrupt supply chains, affect commodity prices and make the economy more volatile. Companies involved in international trade must therefore remain vigilant and implement robust risk mitigation strategies.
How do export finance solutions help to mitigate risk?
Merdžan: Export financing solutions, such as our buyer credits, reduce the exporter's risk of non-payment by the buyer in the importing country. These loans are backed by export credit agencies and promote international trade. They offer protection against political and economic risks. Our digital solution eSpeedtrack enables us to offer buyers’ credits starting at two million euros. This enables us to support a very wide range of export transactions, from the supply of a single machine or production line to subcontracting work on capital-intensive projects such as railway infrastructure or hospital construction.
Which markets do you see as particularly attractive at the moment?
Merdžan: Markets in Asia, such as India and Vietnam, as well as the African continent, offer attractive opportunities due to their economic growth and demographic development. Turkey is also showing positive economic development, which is attracting a lot of interest from companies and international banks. These markets offer great potential but also require effective risk management. RBI's home markets in Central and Eastern Europe (CEE) and the Western Balkans also show the highest economic growth in Europe and are therefore attractive for exporters.
What trends do you see in export finance?
Merdžan: We see a trend towards large, publicly funded infrastructure projects, especially in the areas of sustainability, renewable energy and digitalisation. With our international presence and expertise, we offer funding information and local support especially in CEE. In addition, in close cooperation with partner export credit agencies such as OeKB in Austria, we have launched the successful Shopping Line product, which offers attractive financing for importers and supports Austrian exporters in expanding into new markets.
Ms Koszteczky, how does RBI help its customers to minimise international trade risks and process transactions reliably?
Koszteczky: At the heart of our solutions are products that mitigate risk in import and export business. RBI offers the full range of trade finance solutions such as guarantees, letters of credit, financing and single purchase of receivables. One of our strengths is our connection to various digital platforms, which enable our customers to digitally manage and order guarantees or letters of credit from us. We have fully adapted to our clients' needs and ensure that they can conduct international business efficiently and according to their individual requirements.
What trends and developments do you see in trade finance instruments?
Koszteczky: Despite increasing global trade risks, we are not seeing a significant increase in the use of guarantees and letters of credit, but rather a trend towards open account payments, yet. This in turn increases the demand for purchase of receivables, which serves to optimise working capital. Our trade finance services in the RBI Group offer both standardised documentation and pricing as well as tailor-made solutions addressing specific needs of our clients. Our customers benefit from our expertise and innovative solutions. RBI supports all major multi-bank trade finance platforms as well as offer a proprietary front-end solution. Digitalization enables secure digital communication, transparency and higher execution speed.
How does RBI support its customers in international trade finance and what advantages does its global network offer?
Koszteczky: RBI supports its customers with local trade finance advisory teams in CEE and a global network of 2,000 banking partners in over 130 countries. Thanks to its excellent ratings, most of the trade finance instruments issued by RBI are accepted by beneficiaries worldwide directly.
Merdžan: We are always up to date thanks to constant exchange with stakeholders and industry experts, and we offer tailored solutions for export challenges. We focus on long-term partnerships and offer comprehensive advice and support to promote our customers' success in the global market.