"Money Maker" Funds Are Tight, Clothing Export Enterprises Are Frequently Defaulted.

The recession of foreign economic environment makes many "

"Tight funds, which also makes many foreign trade enterprises in Jiaxing tremble with fear.

Reporters from the China Export and Credit Insurance Corp Jiaxing office learned that in the first three quarters, the number of reported cases and amounts of export enterprises in our city increased significantly.

Enterprises have taken up a large part and become the hardest hit areas.

Why do garment enterprises lose so much? In the face of such a situation, are there any good ways to avoid losses for garment exporters in Jiaxing?

Garment export enterprises with high incidence of reported losses

In April of this year, a garment export enterprise from Tongxiang was told that an old customer who had worked together for five or six years - a Australian fashion company with global chain brands - had problems with funds, and the payment was temporarily unable to pay. At that time, the Australian Corporation still owed nearly $700 thousand in business.

"The Australian buyer has many suppliers in China, and the total default amount is more than a million dollars," the person in charge told reporters.

We have traded with this buyer for five or six years, and the annual turnover is US $23 million, which accounts for 80% of our total export volume. We feel that it will be safer to cooperate with international famous brand enterprises. I didn't expect such a thing happened now. "

When he said this, the person in charge was very depressed.

China trust insurance Jiaxing Office official told reporters, "after receiving the loss, the company first invited the Australian professional compensation agency to intervene to verify the buyer's business and the late repayment arrangements.

At that time, the buyer promised to pay $50 thousand a month to the company, but the buyer only said that he could not continue to pay because of a shortage of funds.

Due to the large amount of money involved, the company is also a small and medium-sized foreign trade company. After confirming the amount of loss and liability of insurance, our company made a quick decision on compensation.

The paction volume of the customer accounts for 80% of the total sales of the company. The risk of this customer is quite serious for the enterprise. It only took more than two months to report the loss to the enterprise and get the reparation. The quick claim settlement has largely relieved the pressure of the enterprise fund.

This is a clothing case reported by China's credit insurance office in Jiaxing this year, which amounts to more than 500 thousand US dollars. In fact, this year, Jiaxing clothing export enterprises have become a high risk area for reporting losses.

According to statistics, in 2014 1~9, China's Jiaxing insurance office received 157 cases of reported losses, and reported losses of nearly 30 million US dollars. The growth rate was very fast, including 35 clothing cases and about 5000000 US dollars involved.

From a national perspective, the risk of exporting textile and clothing products to the European Union has increased significantly over the past years, for example, Britain, Germany and France have exceeded 2%.

European and American buyers lose, bankruptcy leads to default

What causes the frequent loss cases of garment exporting enterprises?

The head of China's Jiaxing insurance office told reporters that since the beginning of this year, the textile and garment industry reported frequent losses, especially the bankruptcy and default risks of large and old buyers and buyers in Europe and America, which is a fatal blow to the export enterprises in our city. It is mainly manifested in the continuous loss of buyers and sellers. The two is the decrease of buyers' financial resources leading to tighter liquidity, the three is the closing of the assets of the stores, and four, the traditional retail industry is facing a shuffling pattern. Many hundred years old shops are in a state of precarious existence, which leads to various types of debt default incidents of domestic suppliers.

Because of the particularity of the product structure and the way of settlement, the cost of debt default by foreign buyers is relatively low. In general, the settlement method of T/T after the domestic export enterprises and foreign buyers do not pay the balance after the goods are delivered.

And there is no clear agreement between the two sides on product quality inspection standards. In addition to buyers' default due to subjective and objective reasons, it is also easy to cause foreign buyers to refuse payment on the grounds of quality problems.

China's Jiaxing office recommendation

Enterprises need to increase export risk prediction and prevention. Besides paying close attention to the payment performance and operation of buyers, it is also very important to do quality inspection before shipment. Exporters can ask buyers to send samples or check through third party inspection bodies, such as SGS and other international authoritative inspection bodies before shipment, or when they sign sales contracts, they should define quality standards and dispute settlement clauses, so as to prevent buyers from refusing payment on the grounds of quality problems.