To enter the international market, you will have to deal with the export of your trade goods. What do you need to consider in order to obtain a strong position on the foreign market? Do you have the right export knowledge? Every country has its own laws and regulations. If you export within the European Union, you have to deal with EU legislation. But if you export to other countries, you will be subject to additional laws and tax regulations.
Letter of credit
When you export, there is always a chance that your customers will not pay (on time). And large (customized) orders involve extra risks, because you have no certainty that your product will actually be purchased. Often, prepayment is not possible. However, there are other options that offer you greater certitude as an exporter. Think of a payment guarantee, a debtor insurance policy or a Letter of Credit.
It can have annoying consequences if an order of goods is damaged or delivered too late. Therefore, make use of the standard international delivery conditions that are laid down in the incoterms. This sets out the responsibilities of the buyer and seller. This way you can determine what your transport risk is and how you want to insure this.
You maybe have to deal with foreign currency when you trade outside the EU. The exchange rates between the euro and foreign currencies fluctuate continuously throughout the day.
You can create more certainty for your business by managing currency risks with currency risk products that are available. As an exporter, you will then protect the forward exchange transaction against unfavorable exchange rate developments in the future. You can declare a currency exchange rate for an amount in foreign currency that you later will receive.