There’s no question exporting has many well-documented rewards, but it also comes with challenges, one of which is political risk. On Dec. 3 at 1 p.m. EST, join a panel of experts as they face those challenges head-on and offer solutions to them. Register online today to participate in our free webinar.
Join Dominique Bergevin, senior underwriter at EDC; Phil Turi, general counsel and director of global business at Canadian Manufacturers & Exporters; Jeff Keats, senior financing manager at EDC; and Benoît Hubert, president of PGF Consultants, as they share their stories from exporting’s front lines. The event will look at how to find and keep international customers, manage risk, break into new markets, make sure you’re compliant with international rules and regulations and finance your export sales.
Risks to exporting range from dealing with different regulatory environments and the “out-of-sight, out-of-mind” phenomenon. Challenges include accessing working capital and financing big orders.
“It’s common, for example, to see companies that may not have the working capital to take on a large contract or that may not have the financing to support off-shore assets and the question would be where do they turn for help,” said Jeff Keats, a senior financing manager at EDC. “Maybe you’re looking to increase the size of your operating line, but you’re still a smaller company, or you have a large export contract, but you don’t quite have the right banking facilities to finance a contract, or you have offshore assets. EDC can make it easier for banks to tackle outside-the-box transactions like that. We can guarantee a portion of their loan in a variety of ways to help the company grow.”
According to Dominique Bergevin, senior underwriter at Export Development Canada (EDC), political risk is one of the risks few exporters anticipate.
“When you’re selling abroad, you’re exposing yourself to a new geo-political environment and that needs to be understood and the risks around that need to be identified,” Bergevin said. “You can think of political violence and terrorism kinds of risk, but if the economic situation of the country is more difficult, the government can decide to put exchange controls in place and interrupt the flow of your money coming out of the country. You can think of Greece, Ukraine, Egypt, Argentina and Venezuela. One of the ways to prevent that is to repatriate money more regularly in smaller amounts.”
Click here to register for EDC’s free webinar Export challenges: How to overcome them and succeed on December 3 at 1p.m. EST.