Why finance trading UK?
Finance trading UK has given an enormous growth to international trade market and has enhanced 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 they need the shipment to be paid by importer. For which they have letter of credit in which an account is opened in the name of exporter by the importer in the bank of his or her country in London provides guaranties to the exporter. In this way the demand and good supply is met in financial trading.
Finance trading is even like a course where you get trained regarding export and import. Trading is an art about how to sell the product to attract your buyers.Uk has got many importer and the importers include countries like china, India, Brazil and many other countries.
Advantages and disadvantages
In financial trading there is 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. Financial trading is easy and it provides 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. The product gets very expensive if the payment is not met on due date.
Factors and Credit
It includes a lot of stuff like export credit, lending, letter of credit, insurance. Because of these factors the financial trading is running in a smooth way. Letter of credit is given to the exporter and the at times 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 are there which act as a mediator between government and the exporters. 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 to run in benefit of both exporter and importer.
It helps the exporter so that they get faith on importer that the money would be back to them before on due date. It gives assurance for better trading. It plays a vital role in financial trading.
The agency like ECA provides insurance to the exporters when they are not aware of risk involving and at times when deal gets cancelled up. The insurance assures them to again re combat with the trade to sustain in the market.
There are many companies involved in the financial trading.Uk has many importers like India, china, brazil.
The companies into 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 lot of changes and it has synthesized the International trading market.