'Insure to minimise trade finance risks'

Tough trading conditions and bad debts will be some of the major challenges faced by the industry this year and vendors should consider taking out insurance to minimise their trade finance risks. That’s the advice from Margrit Wolff, managing director of Mercury Freight, a logistics company which offers trade finance as a value-added service to its clients. Wolff says many of Mercury Freight’s clients have reverted to offshore financing of their international purchases. “There are numerous advantages to this; it offers privacy, mobility and simpler, more understandable regulations,” she notes. She told FTW that there seemed to be “quite a few opportunities” for finance from the United Arab Emirates, Greece, Hong Kong and China. “Interest rates from there are lower, although the dreaded rate of exchange will always be with us,” says Wolff. INSERT & CAPTION Many clients have reverted to offshore financing. – Margrit Wolff