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Integration of U.S. small businesses into the export trade sector using available trade finance tools and resources: Part 2.(selected topic)
(This is a continuation of the article by Koch that appeared in the October issue. In Part I, Koch discussed the current status of small business participation in export trade and the tools available to facilitate doing business outside U.S. borders.)
Risk Mitigation--Protecting International Accounts Receivable From Loss
The subsequent need is to reduce the risk of loss to the small business exporter if and when their foreign customer does not pay the exporter's sales invoice. Again, there are solutions to mitigate these risks of loss, which result from two sets of risk of loss event perils:
1. Foreign "Commercial" Risk of Loss Events
...
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Source: HighBeam Research, Integration of U.S. small businesses into the export trade sector...