Good time every one and compliment of the season especially to the readers of Nigeria Kicker Online Newspaper both in Nigeria and in diaspora.
Please bear with me for the gap since my last discussions on this column on 20th July, 2025.
Today I will be discussing about Export and risk mitigation on none payment after supplying goods as well as mitigating the risk of failure to supply after making payments.
Export, or shipping goods internationally can be a complex and risky process. To mitigate the risks associated with non-payment and non-supply, businesses can use a variety of strategies.
Let me talk about one which is an Advance Payment Guarantee, (APG ) also known as a Payment Guarantee or Performance Guarantee. It is a useful tool for mitigating the risks associated with exporting goods and receiving payments.
I am advising exporters to always take advantage of Advance Payment Guarantee (APG) when engaged in business of supplying any commodity In international market .
Read Also: Trade Finance Is Backbone Of International Trade (2)
As an exporter, securing Advance Payment Guarantee when engaged in business with a partner is a wise move. Advance Payment Guarantees are not just financial instruments, they’re trust bridges that support deals before a single product is shipped.
Advance Payment Guarantees as a means of Securing Upfront Payments in Risky Trade Deals.
Upfront payments are often requested to finance production, purchase raw materials, or initiate large-scale projects.
But how can buyers be sure they’ll receive the goods or services they’ve paid for in advance? And how do sellers reassure their clients while still securing much-needed working capital?
The answer lies in Advance Payment Guarantees a trusted financial tool that protects both parties, offering peace of mind in transactions involving upfront funds. Whether you’re an importer, exporter, contractor, or supplier, understanding how these guarantees work can mean the difference between a secured deal and a potential loss.
Further more, Securing Trade finance instruments can help reduce the risk associated with global trade by reconciling the divergent needs of an exporter and importer.
Ideally, an exporter would prefer the importer to pay upfront for an export shipment to avoid the risk that the importer takes for the shipment but refuses to pay for the goods.
Trade Finance and its benefit to businesses.
By reducing risk, improving business working capital and providing greater oversight of funds and documentation, trade finance increase control over the import and export process to facilitate efficient trade flows.
CONTACT ME FOR THE FOLLOWING TRADE FINANCE INSTRUMENTS:
•Letters of Credit (LC)
•Standby Letters of Credit (SBLC)
•Advance payment guarantee APG
•Pre-advice Services
•Bank Guarantees
•Performance Bonds for contractors
•perfomance guarantee for contractors
•Blocked Funds Services
•Proof of Funds Letters
•Bank Comfort Letters
•Ready Willing and Able Letters (RWA)
HAUWA YAKUBU is a Trade Finance Consultant
+2348062245017.
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