Financial Consultancy for International Projects

Authors: Mihail VINCENŢIU IVAN
and Hans KUNDRUS

Published in: Vol:9 No.3 / 2008

      Most major companies deal with partners from all over the world and being many risks involved, the biggest concern is how to get paid. This paper takes an analyst perspective of some payment methods and scenarios used in international projects, which depend on the terms the competition is granting, the availability of the product, the creditworthiness of the buyer, the political and commercial risks inherent in the buyer’s country, the total value of the shipmen, and the methods permitted by import restrictions in the buyer’s country.

      A company doing business abroad, supported by financial consultancy, may turn to methods and instruments which, on one hand, reduce risks and, on the other hand, assure a good profit.

      In this paper, we will look at drafts, stand-by letter of credit, foreign exchange transactions and hedging.

Pages: 37-44