Textile And Clothing Exports: Three Factors Lead To A Sharp Increase In Risk

Recently, a family in Ningbo Home textile products Exporters are applying for "unsecured unsecured financing" to Zhejiang Avenue factoring limited. 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, reporters in the city's foreign trade and Trade Training Center held "textile and garment enterprises trade risk and prevention training course" learned that, in the first half of this year, Ningbo textile and garment enterprises export trade risk increased rapidly, wind control experts remind the vast number of export enterprises should pay attention to guard against the risk of foreign exchange earnings, it is better to carry out a credit investigation or insurance before the receipt 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. clothing Industry export risk analysis and insurance service 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, reminded Ningbo export enterprises to pay attention to these characteristics.

Current global Economic recession Buyers are also very cautious. Generally, they are small bills and short lists. 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 recession and 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 old customers but also new customers.

"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 the textile and garment industry, a large increase in the number of reported cases of export trade, experts believe that there are three main reasons.

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 remind Ningbo's vast export enterprises that the credit situation of enterprises in Europe and the United States will undergo some changes. Even the top 500 companies in the world are laying off workers in a large number of enterprises, and export enterprises should understand 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. CITIC insurance experts found that there were no written contracts and contracts in some enterprises through the analysis of various reported cases.

There are no signatures, non verifying signatures and their qualifications, the buyer's name of the contract is not standardized, the content of the contract is not clear, and the terms of trade are 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 transaction process, and timely urge the seller to report money to the credit insurance company in time.