AP2 Explain the types of finance available for international businessThe main Free Essay Example

5/A.P2 – Explain the types of finance available for international business.The main stage for a business company to get more famous is to trade internationally as this would help them to expand their business worldwide.Prepayment by the importerCash in Advance/Prepayment occurs when a buyer sends payment in the agreed currency and through agreed method to a seller before the product is manufactured and/or shipped. Upon receipt of payment this seller then ships the goods and all the necessary shipping and commercial documents directly to the buyer.

JaguarJaguar is a business company that imports a variety of different products to over 100 different countries worldwide.China is currently the largest importer of their products, in which the Jaguar business company supplies their latest model cars to Chinese retail shops on the basis that payment is made prior to the agreement. This is because there is a high demand for Jaguar Car Company’s products, and by paying in advance, the total cost of the order can be maintained at a particular level.

McLarenMcLaren is a business company that imports a variety of different products to over 100 different countries worldwide. North America is currently the largest importer of their products, in which the McLaren business company supplies their latest model cars to North American retail shops on the basis that payment is made prior to the agreement. This is because there is a high demand for McLaren Car Company’s products, and by paying in advance, the total cost of the order can be maintained at a particular level.Letter of credit A letter of credit is a letter from a bank ensuring that a purchaser’s installment to a seller will be received on time and for the right sum. If the purchaser can’t make installment on the purchase, the bank will be required to cover the full or remaining measure of the purchase. Because of the idea of universal dealings, including elements, for example, remove, varying laws in every nation, and trouble in knowing each gathering by and by, the utilization of letters of credit has turned into an imperative part of worldwide exchange.JaguarThis financing technique is utilized by the Jaguar Business Company broadly as many of their business interfaces abroad pick to settle the arrangement before any contemplations are made. For example, Jaguar Business Company conducts business with various European retailers whom arrange huge amounts of their items. This technique is ideal for these organisations since the points of interest of the request can be discovered first, taking into consideration more clear between Jaguar Business Company and the customer before the payment has made.McLarenThis financing technique is utilized by the McLaren Business Company broadly as many of their business interfaces abroad pick to settle the arrangement before any contemplations are made. For example, McLaren Business Company conducts business with various European retailers whom arrange huge amounts of their items. This technique is ideal for these organisations since the points of interest of the request can be discovered first, taking into consideration more clear between McLaren Business Company and the customer before the payment has made.Export creditsA Export credit office is a financial establishment that offers financing for residential organisations’ global fare tasks and different exercises. ECAs offer credits and protection to such organisations to help expel the danger of vulnerability of trading to different nations. ECAs likewise guarantee the political dangers and business dangers of abroad speculations. Subsequently, they empower send out exercises and worldwide exchange. There is no set model for an ordinary fare credit organisation; some work from government divisions, while others work as privately owned businesses.Jaguar A huge number of Jaguar Business Company customers pick this financing technique based on the preferences to get the products first before installment is settled inside a set time allotment or maybe the preference for credit as a financial strategy to set aside some cash being traded between the customer and business. For instance, a few retailers in North America who direct ordinary business with Jaguar Business Company favor this strategy because of the complex export rules with European nations. In this way, it is helpful for the two organisations to offer credit to set aside some cash from being always exchanged between the two associations.McLarenA huge number of McLaren Business Company customers pick this financing technique based on the preferences to get the products first before installment is settled inside a set time allotment or maybe the preference for credit as a financial strategy to set aside some cash being traded between the customer and business. For instance, a few retailers in North America who direct ordinary business with McLaren Business Company favor this strategy because of the complex export rules with European nations. In this way, it is helpful for the two organisations to offer credit to set aside some cash from being always exchanged between the two associations.

Remember! This is just a sample.

You can get a custom paper by one of our expert writers.

Get your custom essay

Helping students since 2015