Having worked with a large number of exporters internationally at Seawise Capital, we have gained a lot of insights on common tactics used by exporters to maximize their return from exports while minimizing costs. We share some of our learnings below:
Depending on the type of shipment, and buyer’s requirements it can be smarter to consolidate shipments and send together in a larger container. This helps save on shipping costs as exporters can benefit from economies of scale. Along with shipping costs this can also potentially save on the custom clearance fees, and land transportation costs.
Offering Payment Terms:
Offering payment terms to buyers usually makes a supplier more attractive than another similar supplier without payment terms. Buyers are often willing to pay a premium and place more orders with exporters who offer extended credit terms on an invoice. This can mean increase in business and revenue for the exporter. Exporters may require a financing partner such as Seawise Capital in place to be able to offer such terms.
Correct Export Paper work:
Your export paper work needs to be correctly and clearly filled out, as any discrepancies can lead to item misclassification. This can lead to incorrect duties and costs being placed on the goods, for which the claims process can be lengthy and time intensive. As the processes are largely still reliant on humans, it is better to be as clear as possible on the forms and minimize the room for error. There are now exporter based software systems available that reduces the likelihood of such errors, saving exporters time and money.
Choosing the right Freight Forwarder:
A Freight Forwarder acts as an agent on your behalf and assists in moving your shipment to foreign destinations. Competent Freight Forwarders are familiar with the rules and regulations of foreign countries, methods of shipping, and required documentation. They can assist you in preparing pricing quotations by providing freight costs, port charges, documentation fees, insurance costs, and handling fees. They can also recommend packaging methods and transportation modes that will best protect your products during transport and ensure they arrive when and where you need them to.
Secure Financing for Your Exports
Managing working capital is just as important as cost saving and can have similar effects on your balance sheet in the long term, i.e., giving flexibility and opportunities to grow your business in the future. This will release cash for you as an exporter which would otherwise be tied up in the payment cycle.
This is a useful financial tool for Exporters who are looking to grow trade volumes, while reducing risk from their receivables.
Seawise Capital is a UK based trade finance company, offering factoring facilities to Indian Exporters. We have been operating in India since 2018, and are backed by large institutional US and UK based investors. With our own balance sheet capital, we fund the customers ourselves and have a quick funding process. We have customers all over the world, ranging from small to large scale exporters and we can tailor our solutions based on your requirements. With our fast and fully online process, you can get set up with a facility in less than a week.
One of the benefits of working with Seawise Capital over other providers is our flexibility. We understand the delicacy of the supplier/buyer relationship, and structure bespoke and cost-effective solutions that work for all the parties involved. We can cover buyers in over 150 different countries, and work with leading credit insurance providers and banking partners to make sure our clients get the best service.