Foreign business risks
Inability and/or unwillingness to pay on the part of debtors and guarantors.
The buyer cannot or will not pay.
Risk that political events or measures may prevent the performance of contractual obligations.
War, rebellion, revolution, annexation, civil unrest, embargo, boycott, government debt, protectionism.
Impossibility of converting and transferring the amount paid in the national currency.
Payment ban, exchange controls, moratorium, consolidation, transfer ban.
Importer cancels or changes the order unilaterally, or importer is unable to perform the contractual obligations.
Due to production problems, financial difficulties of the producer, late delivery of goods or missing delivery.
Contractual delivery is impossible or cannot be reasonably expected due to a subsequent increase in the credit and/or country risk, or due to lack of transportation.
No ship available.
Goods lost or damaged in transit.
Appreciation and depreciation of a currency or fluctuations in the CHF/foreign currency exchange rate.
In the case of completion of a contract or invoicing in a foreign currency.
The product does not conform to contractual specifications or the machine supplied does not function correctly.
Manufacturing defect, defective assembly, poor quality.
The key settlement risks:
Non-compliance with deadlines, non-observance of national regulations, incomplete delivery, customs problems, missing or incorrect documentation.
If a documentary credit or guarantee is valid and/or payable abroad, there is a danger than the documents will arrive too late or will be lost. Result: the payment is delayed or may even not be effected.
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