The Management of Collectıon Rısk in Export

Proceedings of The 2nd International Conference on Advanced Research in Management, Business, and Finance

Year: 2019


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The Management of Collectıon Rısk in Export

Metehan Ortakarpuz




Export, in general, is a phenomenon that strives to be continued due to the important reasons, such as to increase sales and profits, to share from foreign markets, to reduce the dependence on the domestic market, to increase competitiveness, thus to ensure growth and sustainability. Therefore, the enthusiasm and desire of enterprises to export is always fresh. However, in parallel with the general trade risks, there are risks of exports. Safe exportation is important in terms of the sustainability of exports and economic growth. For this reason, it is necessary to determine the risks of exportation well and take precautions accordingly. In general, the most important of these risks is the collection risk.While the risk of the collection in international trade takes on a different dimension, more professional management is needed to manage the risk compared to domestic trade.There are various international payment systems that enable payment of the export price. Since some of them are for the benefit of the buyer and some of them are for the benefit of the seller, the system according to which the payment will be made is determined by the negotiation and agreement between the parties.This study deals with the situations that pose the risk of collections in exports, whereas putting forth the risk distribution of developed payment systems between the parties and examines the instruments that can be utilized to manage the undertaken risk. Thus, it provides a general framework with qualitative evaluations to manage the collection risk in export. It is aimed to make a general contribution to the literature and to guide the exporting enterprises.

Keywords: Export, Collection, Collection Risk, Payment Methods, International Trade.