EMERGING MARKETS GROWTH ON THE RISE

GROWING MIDDLE CLASS IN EMERGING MARKETS BRINGS NEW OPPORTUNITIES

WHAT ARE THE RISKS IN EMERGING MARKETS?

Trends, Risk Factors & Solutions

MAXIMIZE INTERNATIONAL GROWTH OPPORTUNITIES

Emergence of middle class = rapid urbanization = large infrastructure projects

Consumer power = retail growth = massive distribution network and new supply chain opportunities

Social conscience = Environmental management

Do a proper credit check

Use Political Risk Insurance to protect your foreign assets

Consider factoring as part of your credit strategy

Document, document, document

Non- payment from customers

Political unrest

Sanctions Currency controls

Build relationships with new customers

Use credit insurance to protect your cash flow

Have a well-defined overdue and account collection process

• Finding corporate information for emerging markets is trickier

• EDC Opinion Report: includes opinion on whether buyer is insurable

• D&B Business Information Report: legal issues, credit and financial information and more

• Protect your assets from expropriation, breach of contract, political violence, and more

• Protect your cash flow from imposed currency restrictions

Factoring companies will buy your accounts receivable, often on a non-recourse basis, leveraging your credit risk into cash

Your chances of collecting on a delinquent account are highest in the first 90 days

5% of EDC claims start from a dispute

The first time you sell to a customer, use a “master agreement” rather than just a purchase order

Include your Finance Services team as well as your Sales team

Be sure you get paid through a variety of flexible options at edc.ca

Visit the new Receivable Insurance Association of Canada at receivablesinsurancecanada.com

7 WAYS TO MANAGE RISK FOR A GROWTH STRATEGY

› Learn more about growing while managing risks at edc.ca/risk

ASIA1/3 of world’s GDP

AFRICA home to some of the

world’s fastest growing economies

SOUTH AMERICA

emergence of middle-class buying power

Many experts are forecasting the end of the global recession and a promising period of new growth.

Get your company ready to take on international opportunities by knowing how to manage the risks and obstacles to success.

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5 6 7

India plans to

spend $1 T

China plans to spend $300 M

endless global impact