Analysis of short-term instruments of export financing as well as the various forms of financing via supplier credits for medium-term export financing, taking into account the risk protection costs

Table of Contents

1 Introductory remarks

1.1 Initial situation and problems

1.2 Goal of the work and personal motivation

1.3 Delimitation of the topic

1.4 Procedure

2 Theoretical basics

2.1 Methodology of work

2.2 Definition of important terms

2.3 Euromarket financing

2.4 Acceptance credit

2.5 Export factoring

2.6 Forfaiting

3 State export credit insurance

3.1 OECD and Berne Union regulations

3.2 Forms of coverage by the waistband

3.2.1 Supplier credit cover

3.2.2 Manufacturing risk cover

4 Short-term financing. cost comparison

4.1 General starting position

4.2 Costs of the Hermes cover

4.3 Overdraft costs

4.4 Acceptance credit costs

4.5 Costs of export factoring

4.6 Comparison of costs

5 Short-term financing. SWOT analysis

5.1 Overdraft facility

5.2 Acceptance credit

5.3 Export factoring

5.4 Comparison of the results of the SWOT analysis

6 Medium-term financing. cost comparison

6.1 General starting position

6.2 Hermes coverage costs

6.3 Equity financing

6.4 Debt financing

6.5 Forfaiting

6.6 Comparison of costs

7 Medium-term financing. SWOT analysis

7.1 Equity financing

7.2 Debt financing

7.3 Forfaiting

7.4 Comparison of the results of the SWOT analysis

8 Summary

Thesis Objectives and Key Topics

The objective of this thesis is to examine instruments for short-term and medium-term export financing, specifically focusing on business transactions with Belarus. The study aims to determine the most appropriate financing instruments by evaluating risk protection costs, utilizing cost comparison methods, and applying SWOT analysis to assess the suitability and impact of different financing alternatives.

• Instruments of short-term export financing (Overdraft, Acceptance credit, Factoring).
• Forms of medium-term export financing (Equity financing, Debt financing, Forfaiting).
• Analysis of political and economic del credere risks in exports to Belarus.
• Utilization of the Hermes cover for risk hedging in international trade.
• Strategic decision-making processes for exporters regarding financial and credit risks.

Excerpt from the Book

Summary of Chapters

1 Introductory remarks: Provides an overview of the current situation for German exports to Belarus and outlines the goals and procedure of this thesis.

2 Theoretical basics: Defines essential financial terms and explains the methodologies used for analysis, including the SWOT method and cost comparisons.

3 State export credit insurance: Details the functionality of the Hermes cover and the regulations set by international bodies like the OECD and the Berne Union.

4 Short-term financing. cost comparison: Performs a quantitative comparison of costs for different short-term instruments in a specific export scenario.

5 Short-term financing. SWOT analysis: Evaluates the strengths, weaknesses, opportunities, and risks associated with each short-term financing instrument.

6 Medium-term financing. cost comparison: Examines and compares the financial costs of medium-term supplier credit options, including equity and debt financing.

7 Medium-term financing. SWOT analysis: Assesses the strategic implications of medium-term financing choices using the SWOT framework.

8 Summary: Concludes the thesis by summarizing findings on risk coverage, cost-efficiency, and strategic decision-making in export business.

Keywords

Export financing, Belarus, supplier credit, Hermes cover, del credere risks, SWOT analysis, short-term financing, medium-term financing, forfaiting, factoring, overdraft facility, cost comparison, risk hedging, export credit insurance, international trade.

Frequently Asked Questions

What is the primary focus of this thesis?

The work primarily focuses on identifying and analyzing the most effective financing and risk-hedging instruments for German companies exporting to Belarus, specifically considering political and economic risks.

What are the main thematic areas covered?

The thesis covers short-term instruments like overdrafts and factoring, medium-term forms such as equity and debt financing, and the role of state export credit insurance (Hermes cover).

What is the central research question?

The study addresses two main questions: how German exporters can avoid del credere risks, and what specific opportunities and risks are associated with different financing instruments.

Which scientific methods are employed?

The author uses cost comparison analysis for financial feasibility and SWOT analysis to evaluate the strategic strengths, weaknesses, opportunities, and risks of the chosen instruments.

What does the main body of the work examine?

The main body systematically analyzes the costs and SWOT profiles of various short-term and medium-term financing forms, providing calculations and comparative matrices for decision support.

Which keywords best characterize this work?

Key concepts include Export financing, Hermes cover, del credere risks, SWOT analysis, Forfaiting, and Factoring.

Why is the choice of financing instrument critical for Belarus exports?

Due to the specific economic and political instability in Belarus, selecting an instrument that balances risk protection with cost-efficiency is essential for maintaining liquidity and competitiveness.

How does the author evaluate the "Acceptance Credit"?

While the author identifies the acceptance credit as one of the most cost-effective options, they also note that it requires high creditworthiness from the importer and is becoming less flexible due to strict regulations.

What conclusion does the author reach regarding Forfaiting?

Forfaiting is identified as a secure, yet more expensive alternative suitable for medium-to-long term receivables, especially when credit insurance is not available.