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

Bachelor Thesis from the year 2017 in the subject Business economics - Trade and Distribution, grade: 1.3, University of Applied Sciences Braunschweig / Wolfenbüttel; Salzgitter, language: English, abstract: This Bachelor thesis is aimed at all exporters who are interested in doing business with Belarus and who want to inform themselves about the coverage of del credere risks and export financing because export financing is nowadays expected as part of the offer. Consequently, the aim of this work is to examine the instruments of short-term export financing and the forms of medium-term financing, taking into account the risk hedging costs for decision-making in export business with Belarus. The risks are covered by export credit guarantees issued by the Federal Republic of Germany. Export financing is provided through supplier credits for the purposes of competitive differentiation. All instruments examined were used to refinance supplier credits. Such decision methods as cost comparison and SWOT analysis are used to determine the appropriate instrument. After the SWOT analysis, risks, opportunities and such important criteria as security, liquidity inflow, creditworthiness requirements and administrative expenses are assessed. The cost comparison carried out identifies the acceptance credit as the most favourable instrument for short-term export financing. The most favourable instrument for medium-term export financing is equity financing through supplier credits. The use of the SWOT analysis reduces the probability of a risk or opportunity miscalculation and thus of a wrong decision.