Trade Finance as a Business Development Strategy

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Adam Smith Associates Pvt. Ltd.

• A Global Trade Finance Company

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Trade Finance as a Business Development Strategy
Adam Smith Associates Blog August 23, 2017
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Trade Finance as a Business Development Strategy
Adam Smith Associates Blog August 23, 2017
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Trade Finance as a Business Development Strategy
Adam Smith Associates Blog August 23, 2017
When it comes to your business development
strategy, you want a method that will help your
small business expand and grow. Here is how
trade finance helps. Without trade finance,
there wouldn't be Indian spices, clothes, Or
jewelry in the United States. Or Apple's iPhones
in China, much Less any other international
product at any respectable distance from its
origin. 
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Trade Finance as a Business Development Strategy
Adam Smith Associates Blog August 23, 2017
In fact, according to Investopedia, the World
Trade Organization (WTO) estimates that
international world trade has expanded 80-90
thanks to trade finance.  For this to continue,
companies need to include trade finance in their
business development strategies.  How do you do
that? Learn how you can incorporate trade finance
into your business development strategy.
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Trade Finance as a Business Development Strategy
Adam Smith Associates Blog August 23, 2017
Incorporate Inland Trade Finance in
Market Penetration and Market Development Market
penetration and market development are key parts
of a business development strategy. Market
development involves selling more of your
service or product to repeat customers. While
market penetration is about expanding your
product or service to other cities and
provinces, it can involve inland trade finance.
As you may have to renegotiate local and
provincial trade deals. 
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Trade Finance as a Business Development Strategy
Adam Smith Associates Blog August 23, 2017
For instance, let's say you sell jewelry. A
business from a neighboring city may purchase
your jewelry and sell it to its customers.  You
have a long history with this client. And know
that your product is selling quickly in your
customers' shop. In which case, you could
propose selling the client more jewelry for a
bulk price.  After negotiating, the client
agrees. However, despite the long, Positive
history you've had with the client, the client
may not feel comfortable paying you before you
export the jewelry. This is where a trade
financier or banking institution comes in,
providing a letter of credit promising that you
will export the jewelry upon payment. 
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Trade Finance as a Business Development Strategy
Adam Smith Associates Blog August 23, 2017
Consider the Internet and Brick-and-Mortar
Stores If you're already selling more of your
product or service to clients, perhaps it's time
to branch out to another channel such as the
Internet? If you run a successful e-commerce
store, maybe it's time to start a
brick-and-mortar store as well? That way, your
customers have more options where to buy your
products.   Especially when it comes to
brick-and-mortar stores, trade finance can help
you secure new import and export trade
deals-especially when there are multiple
currencies involved.
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Trade Finance as a Business Development Strategy
Adam Smith Associates Blog August 23, 2017
Creating a New Product or Service for Repeat and
New Customers With repeat customers, you're
doubling the number of products the repeat
client is importing.  And, with new clients,
your new product or service will expand your
client base. It's important that you first
create new products for your repeat customers
before jumping to new customers, as it
involves more risk.   Again, trade finance can
help cultivate more trust during this period of
growth. Since trade financiers or banking
institutions can create letters of credit,
laying out the terms the importer and exporters
must follow.
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Trade Finance as a Business Development Strategy
Adam Smith Associates Blog August 23, 2017
Final Thoughts About Your Business Development
Strategy Know that growth doesn't happen in a
day it's harder for businesses to jump from
market penetration to supplying new products to
new clients.   This is why we recommend that you
approach growth slowly. However, know that trade
finance may help increase the number of clients
you trade with, no matter where they
are.  What's your take on trade finance? How has
it helped your business? Check out our blog for
more information.  
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Disclaimer
Adam Smith Associates Blog
We empower our clients by providing values added
services that benefits them with the right
knowledge and boosts their business decision on
Domestic and International Trade. To provide
the best, we tie up with leading technical
analysts in India to offer latest Relevant
updates on currencies, commodities, domestic and
internal stock and commodity indices and special
reports on internal treasury, crude and many
other related subject to enable your decision
making. While the intention of this blog is to
offer this wholistic view to our website visitors
and clients, the information contained on blog
is for general information purposes only. dam
Smith Associates assumes no responsibility for
errors or omissions in the blog contents.
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