11-Mistakes in International Transactions Where Japanese Companies are Prone to Fail (1)
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Introduction of Credit Management for Overseas Trade

36 Things You Need to Know About Credit Management for Overseas Trade

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11. Mistakes in International Transactions Where Japanese Companies are Prone to Fail (1)

One of the mistakes made by Japanese companies in international transactions is that they do not “investigate customers”.

 

Of course, it does not mean that we do not investigate all the customers. In particular, one should survey a non-listed unknown company with whom you haven’t had transactions before.  However, the situations differ with the entry of an “introducer”. 

 

Often we trust partner and end up giving credit owing to an introduction by influential customers or local politicians or a heavy influencer. 

 

In addition, surprisingly, there are many introductions of managers and directors. Under internal credit management rules, even for customers that are not eligible for credit, it is often the case that it is treated specially by the president's voice of authority such as “This company can be trusted because it is credible”. As a result, the transaction is started without conducting sufficient investigations and examinations, resulting in problems such as delayed payment.

 

Having an introduction and doing research is a story of different dimensions. Customers should be investigated according to regulations, regardless of introductions.

 

In addition, there are companies that have investigated at the time of new credit and never conducted regular investigations. It is important to rank and rate according to the customer's creditworthiness and change the frequency of the periodic investigation accordingly.

 

However, no matter how powerful a company is, it does not mean that it is not necessary to investigate for 5 or 10 years. In particular, overseas companies have a side where information is difficult to obtain, so even major companies should conduct regular surveys every two to three years.

 

It is the same as the human body, an unexpected illness may be discovered at a regular medical check-up. Such steady activities will lead to the early detection of business failures of customers.

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【PDF】Introduction of Credit Management for Overseas Trade

Introduction of Credit Management for Overseas Trade

36 Things You Need to Know About Credit Management for Overseas Trade

This ebook was created as a resource for those who have trouble with diverse trading or want to learn Credit Management in a rational.

 

Chapter (Excerpt)

  • Major Differences Between International and Domestic Transactions 
  • Trade Reference
  • Bank Reference
  • Collection Agency
  • Reasons Behind Difficulty in Recovering Delayed Debts
  • Mistakes in International Transactions Where Japanese Companies are Prone to Fail
  • Customer Analysis ~ 5 C's of Credit
  • Dangerous Signs
  • Five Principles of Debt Collection