Trading inland or within the nation is easy but exporting is dangerous as we do not know the buyer and cannot assess his intentions.
In addition, if there is a discrepancy in the transaction recovery is an expensive and time-consuming affair, impossible too.
This is the general stigma for many entrants, who aspire to tread into exports. However J SUDHAKAR, Senior Manager, ECGC Limited dispelled this fear of many.
Speaking to a group of aspiring entrepreneurs at an export program, he said, ECGC Limited has a customized insurance policy to take care of the Export Credit Risk. This cover helps the exporter recover his goods value under commercial risks like “Insolvency of buyer or LC opening bank, Protracted Default of buyer after acceptance or LC opening bank and Non-acceptance of goods.”
The other important risk that has no control arises out of political situation at the destination. The political risks that the policy covers are “War/civil war/revolutions, Import restrictions, Exchange transfer delay and Diversion of Voyage.”
The above uncertain disasters are never foreseen and cover for such issues helps many entrepreneurs do business with a stress-free mindset.
Concluding his address, added, calculating the risk with global information and taking the appropriate coverage would help the exporter succeed in the venture.Way2World congratulates those people who got over their apprehensions and moved forward in accomplishing their dreams. Rajkishan