Answer to Question #86662 in Finance for Fredrick

Question

Foreign trade is faced by many risksб among them export credit risk. Suggest the various ways that can be adopted to reduce export credit risk citing the consequences to lack of the measures.

Answer 1

What is the solution, if overseas buyer not paid? Can an exporter provide credit to a foreign buyer? What to do if buyer not paid amount? Please provide tips to get unpaid money of foreign buyer etc.

The best solution is to get an insurance coverage from Export Credit Guarantee Corporation (ECGC) against the buyer. Export Credit Guarantee Corporation is a central government undertaking body to provide credit guarantee on the default of payments by the buyer. It works as an insurance firm who guarantees export payment, if the buyer defaults in making payment.

Source:

https://howtoexportimport.com/How-to-overcome-credit-risk-in-export-business--65.aspx