By the impact of the global epidemic, the world economy is in serious recession, international trade investment is shrinking, the supply chain cycle of the industrial chain is blocked, and risks in finance and other areas have accumulated. It can be seen that the international trade market has once again suffered a considerable impact, in today’s very serious financial environment, how to control the risk of diversified international financing, innovative financing strategies, still need to be further thought by the majority of industry players.
The current situation and problems of international trade financing in China
1. Trade financing mode is relatively single
Nowadays, international trade financing gradually diversified development trend, providing enterprises with more financing options, however, in the actual financing process, enterprises are still accustomed to the traditional borrowing and financing to participate in international financing activities, there is the problem of a single way of trade financing, especially for small and medium-sized enterprises, if they do not take the initiative to expand financing channels, it will be difficult to break through the financing dilemma, and even face huge financing Risk.
2. Weak control of trade financing risks
Nowadays, international trade enterprises in financing activities, due to the construction of risk control system is not sound, there is the problem of weak risk control, financing risk control work lacks effectiveness and relevance, specifically the marketing department, the production department in the financing risk management is less involved in the risk control work only to the financial department is responsible for, resulting in enterprises can only from the “capital “This is not conducive to the comprehensive avoidance of financing risks.
3. Lack of high-quality comprehensive personnel
It is understood that most enterprises in China in international trade financing activities, there is a shortage of high-quality comprehensive personnel in related fields, the leadership of enterprises are usually more concerned about improving the management level and financing efficiency, and then ignore the construction of high-quality, professional talent team, resulting in the enterprise anti-risk capacity is difficult to effectively enhance. (iv) Facing various financing risks
(1). Exchange rate risk
Exchange rate risk is one of the main financing difficulties faced by enterprises in international trade activities. The so-called currency risk, that is, the use of foreign currency to coordinate the calculation of international trade, by the fluctuations in foreign exchange rates generated by the increase in foreign currency, the phenomenon of depreciation to the enterprise economy brought losses. With the international development of the international trade market, currency risk has gradually become a widespread concern, especially in the past decade, the international financial system has gradually become very vulnerable, coupled with the March 2020 U.S. stock crash, the S&P 500 index closed down 7.6%, the “meltdown” was triggered, forcing the international financial markets to suspend trading At the same time, Saudi Arabia’s oil price war ensued, and all of the above factors caused the stock market to plummet to a certain extent, in the context of such a chaotic financial market order, the continuous appreciation of the RMB will mean that the profits obtained by small and medium-sized enterprises in international trade will be somewhat compressed, at the same time, production costs will gradually be increased, the competitiveness of products will decline, and some of the unrecovered debts will also be Due to the instability of foreign exchange rate, they will bear great currency risks and even suffer serious losses.
(2). Interest rate risk
Up to now, due to the development trend of international financial liberalization, the restrictions on interest rates have been continuously relaxed, resulting in a volatile situation in the international financial market, which increases the financial risk and makes small and medium-sized enterprises face huge financing difficulties, and the interest rate risk not only increases the cost of enterprise financing, but also threatens enterprise financing activities and causes huge losses.
5. Fraud risk
Nowadays, the risk of fraud is more common in international trade financing activities. The so-called fraud risk, that is, the existence of “credit fraud” phenomenon in international trade financing activities. Once the “credit fraud” will not only make the enterprise economy suffered serious losses, but also the international financial and trade environment “crisis of confidence”, and even cause serious consequences.
6. Political risk
In recent years, many countries have taken certain trade initiatives, and political risks have become more prominent as a result. In the international financing activities, enterprises must pay attention to political risks and try to avoid such risks. Once there is political unrest in a country, not only can not continue to carry out international trade cooperation, enterprises also need to bear the relevant risks.
International trade financing risk control strategies
1. Sound risk monitoring system
A sound risk monitoring system is a key measure to reasonably avoid financing risks, therefore, a sound risk monitoring system is particularly important: First, according to the actual financing needs, risk supervision needs, the construction of a dynamic regulatory system, in order to mobilize the development of enterprise motivation, deepen its development, management and operation of the process of international financing business knowledge, and then effectively reduce the rate of bank funds misplacement At the same time, the financing risks can be reasonably avoided. Second, optimize the credit evaluation system for international trade enterprises, according to the regional economic development reality, to develop a standardized system standards, so that banks can accurately assess the ability of enterprises to repay funds, reasonable avoidance of financing risks, the formation of a sound financing risk monitoring system.
2. Strengthen government support
First of all, the government can set out a series of lists for some enterprises or industries that are prone to trigger the risk of international trade financing to manage them, and strengthen training and guidance for enterprises that have violated the law to help them operate international financing business within the scope of the law more standardized. Second, the government needs to do a good job of strong backing for enterprises to participate in international financing escort, increase the financial investment in this field, and on this basis, the introduction of supportive policies to help enterprises avoid such risks, especially for small and medium-sized enterprises need to strengthen support.
3. Improve corporate reputation
First, enterprises must strictly comply with the principle of fair competition, honesty and trustworthiness, as a benchmark to organize international trade operations within the scope of the law, consciously accept and cooperate with the management and supervision of the relevant administrative departments, and resolutely abandon any financing fraud, fraud and other acts that affect the credibility of enterprises and exceed the laws and regulations. Secondly, enterprises need to actively strengthen contact with banks, and on this basis, banks have a comprehensive knowledge of the credit level, development prospects and business conditions of enterprises, at the same time, enterprises need to continue to internal financial pre-settlement financial control system, and to ensure the systematic and transparent financial accounting documents to enhance the credibility of enterprises.
4. Talent training and talent introduction
Nowadays, the international financial environment is very complicated, for enterprises, the only way to avoid various financing risks in international trade to the greatest extent is to actively introduce talents, cultivate talents, optimize the talent team and improve their knowledge in international settlement and trade financing. At the same time, in order to enhance competitive strength, enterprises can also focus on training staff in credit audit, credit insurance agencies, to create a professional talent team, to enhance their own anti-risk capacity and international financing advantages.
5. Pay attention to risk changes and develop effective risk management methods
(1). Exchange rate risk control methods
In addition to enhancing the risk prevention and control ability of financial personnel, enterprises also need to be good at applying financial instruments to transfer exchange rate risks at a lower cost. The financial instruments commonly used to control exchange rate risks include import and export bets, foreign exchange option transactions and forward exchange settlement, which are the most direct and effective channels to control exchange rate risks.
(2). Interest rate risk control methods
For interest rate risk, you can choose the appropriate financing currency (international stable currency or local currency) combined with the fixed interest rate system to maximize the control of interest rate risk, and control it within the control of the enterprise.
(3). Default risk control methods
For the risk of default, the most effective control method is to strictly screen the creditworthiness of each customer, and on this basis, each international trade is insured, with the lowest cost of professional matters to professional institutions to control, in order to achieve the most efficient risk control results.
International trade financing innovation ways
1. Market innovation
To occupy an advantageous position in international financing activities, enterprises need to innovate the international trade market financing model, first of all, the need to establish a new international market trade chain. At present, commercial banks are the main channel for China’s enterprises to obtain financing funds, is the key point to connect the international trade chain, so the international trade financing market innovation needs to start from the bank, the bank needs to focus on the destination of the loan enterprise funds to ensure the stability and continuity of the financing chain. In addition, also through the issuance of bonds, asset bonds to finance, and constantly expand the international trade market financing channels.
2. Service innovation
The so-called service innovation, that is, financial institutions in the transformation of the service concept, based on effective measures to transform the inherent service process and service mode, so that enterprises can enjoy more rapid and high-quality services when participating in international trade financing activities.
3. Technological innovation
The innovation of financing technology requires the choice of financing methods as the entry point, for example, by increasing the proportion of direct financing to improve the status quo of enterprises too dependent on credit funds. In addition, financial institutions can also improve the original financing products with the help of advanced technology, in order to meet the diversified financing needs of international trade enterprises.
4. Innovation of business types
At present, the financing business launched by financial institutions still has the problem of relative lack of types, based on this, financial institutions need to set up diversified financing business for different types of industries and enterprises to achieve business innovation and fully meet the financing needs of enterprises.
To sum up, the risk of international trade financing is closely related to the exchange rate, policy, economic system, interest rate, creditworthiness, etc. The specific types include currency risk, exchange rate risk, fraud risk, policy risk, for the above risks, both financial institutions and enterprises need to strengthen prevention, correct knowledge of financing risks, and on this basis, actively take effective measures to enhance their own anti-risk capacity, so as to enhance On the basis of this, they should actively take effective measures to enhance their own anti-risk capacity, so as to improve their competitive strength in the international market and provide sufficient guarantee for sustainable development.