DAILY BANKING
Expanding abroad is a challenge for any business. Global Trade Solutions at BNP Paribas Fortis exists to support you and be your partner every step of the way.
Belgium is a global player in international trade, consistently ranking among the top 15 for both exports and imports, in goods as well as services.
Within the European Union, our immediate neighbours are our main trading partners. However, our trade does not stop at the EU’s borders, as just over one-third involves countries outside the Union. And unlike most countries, Belgium’s medium-sized and small businesses are also highly active in international trade.
Whether you are looking for a business partner, a client, or a supplier or you want to set up a company locally, choosing a country or a particular market usually requires an adapted approach to succeed. This involves not only different habits and rules, but also the way people there look at you, your business, and your offer or request. Foreign trade offers opportunities, but it can also come with certain risks and working capital needs. And that makes it different and more challenging than doing business in a nearby or familiar environment.
Borders don’t always make entering a new market easy. Dealing with a foreign partner can sometimes complicate things unexpectedly. And until you know each other well, choosing the right approach to negotiations is key. It’s not uncommon for your working capital needs to suddenly increase. You may require additional financing to cover your international transactions. Thanks to their shared value system, based on international agreements, bankers speak the same language – one built on mutual trust.
You want to build in some certainty: for exports, for example, you want to be paid correctly and on time; and for imports, you need timely and precise deliveries.
A Documentary Collection is a simple, low-cost payment technique. It offers more security than a bank transfer, but it does not give you a 100% guarantee of timely payment for your export or timely delivery for your import.
You want to be sure of correct and timely payment for your export, and equally, the punctual delivery of your import
Unlike a Documentary Collection, a Documentary Credit also guarantees that you will be paid on time for your export or receive timely delivery for your import.
In some cases, you may also be able to obtain pre-financing.
With a First Demand Guarantee, buyers and sellers, importers and exporters, can secure the proper execution or correct payment of a trade transaction without tying up their working capital.
A Stand-by Letter of Credit is a hybrid form: a guarantee in the form of a Documentary Credit, mainly used when you trade regularly with a partner you already know.
Export and import often place extra pressure on your company’s working capital.
Even if you have no working capital needs, it is worthwhile discussing the financing of your international activity with your bank. A wide range of specific solutions exists for the financing of your international transactions.
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Expanding abroad is a challenge for any business. GTS, Global Trade Solutions at BNP Paribas Fortis, exists to guide and support you, and be your partner.
The numbers show you are not alone: more and more Belgian entrepreneurs are finding their way to foreign markets, and those markets are increasingly open to doing business with our country. This creates opportunities for your business too. At the same time, it is clear that many entrepreneurs need information and guidance. That is why we look together at the often complex rules, opportunities and challenges. We also provide financial support and a crystal-clear overview of local do’s and don’ts. At GTS, this is our expertise.
