| Abstract [eng] |
A company needs to first calculate the risk factors and look at both advantages and disadvantages of international trade financing methods before choosing one. Also, a company must take into account the conditions of supplying, their partners and their own financial stance, countries’ political, economic and social situation, the cost of international financing method. A company may choose the right, most secure and trustworthy international trade financing method after it has properly evaluated these factors. Therefore, the task of choosing the right method is relevant to every company engaging in international trade operations. It determines this master thesis topic’s relevancy. The object of study of this master thesis – a company’s international trade expansion and its financial models. The aim – to make a comparison of Mantinga , Ltd international trade financing models’ analysis after the research of a company’s international trade financial alternatives. The tasks established to achieve the set object are as follows: name the problems of international trade financing after thoroughly investigating international trade importance to companies’ activities; unveil the essence of international trade financing based on scientific literature analysis; identify the fundamental financing models of international trade; form a methodology for the research of international trade financing; conduct the models’ analysis of international trade expanse financing of Mantinga, Ltd. Lately, it has been noticed that the international trade scale is increasing. The financial reserves needed to engage in and expand such trade, determine the importance of choosing sources and methods of such trade. Thus, every company encounters obstacles which are related to its international trade financing source (inner or outer) and methods that reduce expenses and minimalize risks related to the companies’ international trade operations decisions. The financing of international trade operations is distinguished by quite a large variety. Depending on the duration and objectives of funding, the amount of the transaction, the own funds of economic entities, additional participants (factoring, forfeiting organizations, export credit agencies) or certain financing conditions (discounting, bank guarantees) could be included into the model. The advantage of each model of international trade financing is the increasing of competitiveness – payment conditions are increasingly used as competitive instruments during the negotiation process. Customers seek for bargains to ensure reliable and attractive credit conditions. Merchants who have access to financing instruments are in a better position, which can stimulate export and national income growth. Based on Mantinga’, Ltd financial responsibility and its financial activities results analysis, it was established that Mantinga, Lt should adopt factoring for its export since its expenses are 53 percent less than the bank’s financed credit value for the same scale exports. The company also benefits additionally with factoring. It no longer needs to make discounts to clients who check out expeditiously. The risk of customers not paying in time gets eliminated and, as such, detriments are saved due to such failed payments. Factoring also improves customers’ payment behavior, enhances the company’s credit rating and the overall appeal in the view of interested countries. |
