Flora Manson

The main factors in determining the freight rate are: mode of transportation, weight, size, distance, points of pickup and delivery, and the actual goods being shipped. In general, the more freight you transport, the cheaper it is. This is an important factor in the rate charged to people or companies shipping freight.

At the moment when you have an idea of the final landed cost of an item, you’ll be able to check whether importing will be a cost-effective option for your business. There are a lot of additional charges you’ll need to pay over and above the cost per unit from a factory overseas, and these can add up. You’ll want to be able to make a reasonable return on an investment after all these costs have been taken into account. It's good thinking to get your accountant, business adviser or customs broker to go through your calculations to make sure you’ve accounted for all the costs you’re likely to incur.

Avalization is defined as the endorsement of a bill of exchange. It is the involvement of a third party whose role is to guarantee the obligations of the buyer as per the contract. By ‘Avalizing’ the document, they are acting as a co-signer on the contract, and thus share liability. When companies are trading overseas, the provision of an AVAL may be often necessary to make the instrument eligible for discount. One example of a document that utilizes the Avalization process is Promissory notes. Technically, a promissory note is a signed document that contains a promise of payment on a specified date. Promissory notes are used to source methods of finance that do not include a banking institution. Although this is generally true, Banks do also issue them.  This third party can be an individual or a company, the only requirement is they are willing to bear the liability. Since anyone can issue the Promissory Note, Avalization instils a lot of confidence in the transaction.

Countertrade is a reciprocal form of international trade in which goods or services are exchanged for other goods or services rather than for hard currency. This type of international trade is more common in lesser-developed countries with limited foreign exchange or credit facilities. Countertrade can be classified into three broad categories: barter, counterpurchase, and offset. In any form, countertrade provides a mechanism for countries with limited access to liquid funds to exchange goods and services with other nations. Countertrade is part of an overall import and export strategy that ensures a country with limited domestic resources has access to needed items and raw materials. Additionally, it provides the exporting nation with an opportunity to offer goods and services in a larger international market, promoting growth within its industries.

For B2B companies, it can be a virtual bank—moving money, accepting deposits, completing transactions and more. This differs from online banking where your business is subject to regulation, monitoring, business hours and other restrictions. Blockchain technology helps B2B companies through: • Efficient supply chains. The blockchain is open to all members of the network. An IBM report notes, “This ‘shared version of events’ enables improved supply chain efficiencies, better multi-party collaboration, and streamlined resolution processes when exceptions or disputes occur.” It does not replace legacy chain supply software, but it engages new realities like the expanding data flows presented by the Internet of Things. • Improved sales processes. “The B2B sales process is based on relationships and responsibility,” said Jeremy Epstein, blockchain marketing expert and CEO of blockchain consulting firm, Never Stop Marketing. B2B sales relationships are ongoing, have a longer lifespan, and in general, require a longer sales cycle than B2C sales. “Trust is essential to B2B sales success and blockchain technology represents a way to expedite the creation of trusted relationships at lower costs” he continued. His eBook, The CMO Primer for the Blockchain World, points out that only 50% of businesses check buyer credit worthiness, request secure forms of payment, or both. And 81.5% of companies report employing credit management policies to mitigate trade risks. • Ease and speed. Joe McKendrick points out that, with this open access system, “blockchain's value proposition is that it takes out the middlemen in transactions, enabling more autonomous types of engagements.” Easing and escalating the speed of financial transactions, blockchain replaces banks, credit card processing and checking. This reduces cost to B2B vendors and customers.