Why finance trading UK?
Finance trading in the UK has given enormous growth to the international trade market and has enhanced the trading sector. Here the needs of both exporter and importer are concerned. The exporter wants’ the importer to pay for the exported product that is, and they need the shipment to be paid by the importer. They have a letter of credit in which an account is opened in the exporter’s name by the importer in the bank of their country. Finance trading UK provides guarantees to the exporter. In this way, the demand and good supply are met in financial trading.
Finance trading is even like a course where you get trained regarding export and import. Trading is art about how to sell the product to attract your buyers. Uk has got many importers, and the importers include countries like China, India, Brazil and many other countries.
Advantages and disadvantages
In financial trading, there is an internal arrangement and agreement between the exporter and importer. It consists of spontaneous financing that reduces the capital requirement. Then the business gets focused on the main project. Therefore, financial trading is easy, and it provides an improvised automatic source to short term financing project.
Only good track record repayment companies can do finance trading, so it is tough for the startup companies. Furthermore, the product gets very expensive if the payment is not met on the due date.
Factors and Credit
It includes a lot of stuff like export credit, lending, letter of credit, insurance. Because of these factors, financial trading is running smoothly. For example, a letter of credit is given to the exporter and the at times, and the exporter gives the export credit to the importer. World trade organization estimated that 80 to 90% of the trading is due to financial trade marketing.
In government imports, the export credit agency like ECA acts as a mediator between the government and the exporters. In addition, these types of agencies provide financial guarantee and insurance.
It is the money that is given in loan and later gained with interest. This also happens in financial trading, which helps the trading run for both exporter and importer benefit.
It helps the exporter get faith that the money would be back to them before the due date. It gives assurance for better trading. Thus, it plays a vital role in financial trading.
An agency like ECA provides insurance to the exporters when they are not aware of the risk involving and when the deal gets cancelled up. The insurance assures them to again re combat the trade to sustain in the market.
There are many companies involved in financial trading. Uk has many importers like India, china, brazil.
The companies in this trading are C&A, Land Rover, C Hoare &co. and many more. As the world is rushing into trading and business, the financial trading business is getting common. It has made a lot of changes, and it has synthesized the International trading market.