How To Avoid The Risk Of Textile And Garment Export Trade

Recently, a domestic textile export enterprise has applied for "unsecured unsecured financing" to Zhejiang Avenue factoring Co., Ltd.

In a credit investigation of its clients, Boulevard found that an American buyer of the home textile company had applied for bankruptcy protection, and its purchases to home textile enterprises exceeded 10 million yuan.

Home textile enterprises are lucky and afraid after learning the results of the credit investigation.

Not long ago, the reporter was presided at the Municipal Foreign Economic and trade training center.

In the first half of this year, the risk of export trade in our textile and garment enterprises soared. Wind control experts reminded the majority of export enterprises to take precautions against the risk of foreign exchange earnings. It is better to conduct a credit investigation or insurance to customers before making a purchase, so as to ensure the safe recovery of trade funds.

The number of reported cases increased sharply in the first half of the year.

Xie Chunmin is a China Export and Credit Insurance Corp Ningbo branch specializing in textiles.

Export risk analysis and insurance services professionals have worked for many years.

An internal data provided by him showed that in the first half of the year, Ningbo textile and garment industry reported 158 cases of losses, an increase of 90.4% over the previous year, 71 cases of claims, an increase of 97.2% over the previous year, a 202% increase in reported losses, and a 367% increase in the amount of claims.

These data are much higher than the average level of Ningbo's letter preservation business, which is also higher than the national average level.

In-depth analysis found that in all kinds of reported cases, the highest proportion from the United States accounted for 37%, Bangladesh accounted for second place accounted for 27%, the United Kingdom, Italy, Spain and other European countries, as well as Canada, Australia and so on are included in the ten major countries.

At the same time, Naka Shinbo Ningbo branch also issued industry country warning.

In addition to the countries mentioned above, Brazil, France, Austria, Hungary, and a number of Middle East countries and South American countries have been included in the warning area, totaling 24 countries.

Two risk characteristics must be vigilant.

Through tracing analysis of these reported cases, Xie Chunmin, as a sensitive risk control personnel, reminds us that the export enterprises should pay attention to these characteristics.

At present, the global economic downturn, buyers are also very cautious, usually under small single, short list.

When the old customer suddenly throws "high price" or "big list", we should be alert to whether the old customer has met with difficulties.

Xie Chunmin reminds us that the global economy is in bad condition, and that the old customers will change their faces.

Therefore, enterprises should not simply attach importance to the "hard won" orders, clearly define the importance of inspection institutions, and attach importance to risk management after shipment, so as not to cause significant losses.

Not only the old customers have to "change face", the new customers can also take the goods "evaporation" after the "human".

"The case of" human evaporation "after foreign customers took the goods has happened more than 20 times since last year, most of which are Greek buyers.

Xie Chunmin said that enterprises should pay attention to this.

According to the analysis, this kind of suspected fraud cases has the following common characteristics: the trade mode adopts the bank collection (common D/P), the buyer obtains the original bill of lading by the abnormal way, the involved amount is within 200 thousand dollars, the buyer asks the seller to inform the express bill of lading number, the collecting bank claims that the trade document is missing.

Three factors lead to a sharp increase in risk.

For textile and garment industry

There are three main reasons for the large increase in reported cases.

1. the European debt crisis has led to the collapse of some settlement banks in Europe and the United States. Some European and American buyers are unable to obtain credit and financial support from banks.

2. agency mode provides space for overseas buyers to exploit loopholes.

At present, the proxy mode represented by Li Feng, Hongkong is prevalent. Under this mode, overseas buyers do not directly meet suppliers, which makes suppliers difficult to understand the real situation of buyers, and it is possible for overseas buyers to implement various fraudulent tricks.

3. Chinese enterprises do not attach importance to buyers' credit management and risk control.

At present, many Chinese enterprises do not attach importance to buyers' credit investigation, and do not attach importance to the management of contracts and accounts receivable.

"Enterprises should not only work hard, but also look up and look around, understand customers, understand the law and understand the market."

CITIC insurance risk control experts have reminded us that the credit situation of enterprises in Europe and the United States will be changed. Even the top 500 companies in the world are laying off workers in a large number of enterprises. Exporters should know the situation of customers and partners in a timely manner.

Credit investigation is very important.

CITIC experts also put forward the following suggestions on how to prevent current trade risks.

1., we should pay attention to the credit risk management from the point of standardizing the contract.

According to the analysis of various reported cases, CITIC insurance experts found that some enterprises had problems such as no written contract, no signature on the contract, no verification of the signatory and their qualifications, the buyer's name of the contract was not standardized, the content of the contract was not clear, and the terms of trade were vague.

The contract is very important. Enterprises should pay attention to signing written contracts. We should pay special attention to some defensive clauses in the contract, such as quality clause, dispute settlement clause, property reservation clause, rescission clause, penalty clause and so on.

2. enterprises should pay attention to analyzing the risk characteristics under various payment methods.

All kinds of trade payment methods have certain risks. Enterprises should be good at analyzing potential payment risks of DP, letter of credit and other payment methods, and take some precautionary measures.

3., enterprises should attach importance to the management and collection of accounts receivable.

We should set up a reminder procedure for accounts receivable which is not yet due, be alert to the risk signals appearing in the paction process, and timely urge the seller to report money to the credit insurance company in time.