How To Avoid Export Risks Under The Financial Crisis

The financial crisis increases the risk of export enterprises, adjusts the export structure, develops diversified markets, collects customer credit, strengthens loan recovery, reasonably forecasts exchange rate changes and avoids risks in time.

In view of the fact that the global financial crisis has profoundly affected the real economy, in order to slow down the economic downturn and introduce proactive fiscal policy on the macro level, increase fiscal expenditure, substantially reduce taxes, push forward the pformation of value-added tax as soon as possible, implement the value-added tax system based on consumption, expand the deficit budget, stimulate domestic demand, adjust monetary policy and implement moderately loose monetary policy, the policy orientation is correct.

At the micro level, enterprises should not be taken lightly. In particular, exporters must learn to control export risks.

Export risks are mainly in the following aspects:

     一是世界經濟下滑、需求下降造成出口訂單減少的風險。它使出口企業銷售困難，盈利水平降低，甚至虧損，開工率下降，停產或倒閉，工人失業。

     二是貨款回收風險。由于進口國經濟衰退，企業和個人支付能力下降，信用降低，出現支付困難，產品出口到貨后不能及時收回貨款，或根本無法收回貨款。

     三是匯率風險。在全球金融危機和世界經濟衰退中，各國所受影響不盡相同，匯率變動不可避免。如果人民幣升值，出口所收外匯貶值，會造成出口商的實際損失。

In order to prevent the risks caused by the reduction of export orders, China's export enterprises should adjust their export market structure in a timely manner, strive to find new export markets, develop diversified markets, and diversify their market strategy; on the other hand, they can turn to developing domestic markets.

Although our country is also deeply affected by the financial crisis, our country has suffered less than its main trading partners, the European Union, the United States and Japan. In addition, the central government has introduced a series of policies to stimulate domestic demand and ease the downward pressure on the economy. In particular, the implementation of a proactive fiscal policy and moderately loose monetary policy, the domestic market demand is expected to maintain a relatively rapid growth.

In fact, many textile and garment manufacturers, footwear manufacturers and exporters are seeking to expand the domestic market.

In order to prevent the risk of export payment recovery, enterprises should start from three aspects: first, pay attention to the collection and evaluation of Importers' credit, not rely solely on historical experience and the friendship established in business dealings in the past. The changing environment of international trade determines the change of customer's situation. The credit situation of previously cooperative customers will change with the change of environment, so we must update customer's credit information timely and establish dynamic customer credit data.

Some small and medium-sized export enterprises can not directly grasp the customer's credit information, they can entrust other enterprises or institutions to assist in the investigation.

The two is to attach importance to export credit insurance.

At present, the proportion of insurance export insurance companies in China is not high, and the coverage rate of export credit insurance is far lower than that of developed countries. Especially, SMEs' export credit insurance consciousness is generally weak, and they are unwilling to spend money on insurance.

In the age of financial crisis and economic turmoil, increasing the input of export credit insurance is an effective measure to prevent the risk of collecting foreign exchange.

Three is to improve the enterprise financial system and risk control system.

The reasonable time limit for export accounts receivable is usually 3 to 6 months. Once this time limit is exceeded, it should be treated as a bad account, provision for bad debts and timely disclosure of relevant information.

Otherwise, it will easily affect the normal turnover of enterprises' capital.

In order to prevent the risk of exchange rate fluctuations, we must first predict the long-term trend of exchange rate changes reasonably.

In foreign trade, it is necessary for us to predict the trend of exchange rate changes and choose the appropriate settlement currency in order to prevent exchange rate fall and improve export efficiency.

Second, we must strive to deal with a strong currency in order to avoid the loss of foreign exchange depreciation.

Thirdly, foreign exchange is hedging.

The exchange rate of RMB against the US dollar and the euro is relatively large and the rate of appreciation is high. According to the estimated contract and the signed contract, the foreign exchange which will be received in the future will be locked as RMB according to the prescribed price in the country.

The locked exchange rate is higher than the exchange rate when the loan is recovered, and it can play the role of foreign exchange value maintenance.

In addition, buying and selling forward foreign exchange.

This is also the most common hedge method in international trade payment.

In order to avoid losses caused by exchange rate fall, the export enterprises can sell a forward foreign exchange which is the same as the time limit, amount and currency of the foreign exchange.