A recent transaction with an Argentine client demonstrated our ability to bridge payment term gaps in cross-border trade. The client requested a single-girder overhead bridge crane but insisted on a locally common payment structure: 20% advance payment and 80% shall be paid within 30 days when finish clearance in Argentina.. This conflicted with our standard policy of full payment before shipment or against the bill of lading (B/L) copy. While competitors rejected the order due to perceived risks, we turned the challenge into an opportunity.
To address concerns over delayed payment reliability, our team proposed integrating trade credit insurance into the deal. After internal risk assessments, we secured a policy covering 90% of the invoice value, effectively minimizing exposure to potential defaults. This solution respected the client's preference for deferred payments while protecting our financial interests. By aligning with Argentina's payment norms without compromising security, we built trust and positioned ourselves as a flexible partner.
The client, impressed by our proactive risk management and willingness to adapt, awarded us the contract. This success highlights two key strategies: leveraging insurance tools to mitigate non-payment risks and tailoring solutions to regional business practices. It also underscores our commitment to entering emerging markets by balancing flexibility with prudence.
My name is Clara, I have been specialized in cranes for five years, involved in all aspects of crane design to export transportation, if you have any questions about cranes, you can contact me.