Trade Finance and Working Capital Management

Export traps liquidity
In Norway and the Nordic region market practice for payment terms is approximately 30-35 days payment terms, but this is not necessarily common practice within your export markets.  In Europe alone we see credit terms spanning 40-120 days, and in most Asian markets 90-120 days are normal credit terms.  As an example; if you increase the credit terms from 30 to 90 days you will triple the amount of liquidity trapped in outstanding payables. As an exporter, it is therefore important to understand the effect export may have on your company’s working capital ratio and perhaps consider the possibility of using this trapped liquidity as an alternative source of funding.
 
Secure your supplies and extend your payments by offering Supplier financing/Supply Chain Financing
You may have been faced with the challenge of being requested to pay your supplier long before you have managed to on-sell your imported goods, or perhaps produced goods based on imported raw material. In DNB we can help you overcome this challenge by various solutions suitable for your specific need that will extend your payment terms whilst still ensuring timely payment to your supplier.

Whatever your challenge with international trade, we would be delighted to offer our support and advice. Please contact our Trade Finance consultant below:

Name	Phone number	e-mail
Jan Martin Holst	+47 934 27 649	janmartin.holst@dnb.no