Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsFinancial Guide for SMEsChapter Nine – Trade Financing International trade finance products are specifically designed toassist importers and exporters in managing risk and improvingcash flow for their businessTopic Hint TipForeign CurrencyPaymentsBy hedging your international currencypayments, you would reduce the riskof negative impact on profitabilityOften using a combination of hedging productsworld provide the best protection over fluctuationsin foreign currencyAlternative Methodsto Manage ForeignCurrency PaymentsForeign currency payments can alsobe managed by implementing alternativepayment methodsIt is advisable to speak to your banker to determinethe best alternative to manage your internationaltrade paymentsInternationalTrade FinanceTrading internationally can be a realstrain on cash flow. If you can negotiatewith your supplier or customer to usetrade finance products, you can releaseyour cash flow for other parts of thebusiness176176chapter 7-13 p79-181 Eng.indd 1768/15/11 5:03:12 PM