Thousand Jiangxi enterprises covered the export credit insurance to avoid 'Yang Lao Lai'

Recently, more and more enterprises of Jiangxi have sought to expand their business to abroad, but it is not easy to earn money in the international market. Last year, many encountered the phenomenon of "Yang Lao Lai", a derogatory term in Chinese used for foreign diehard debtors; at the same time, enterprise export risks have been increasing. Fortunately, export credit insurance offers protection, and up to Feb. 12th, more than 40% of enterprises in Jiangxi had taken up the option.

Jiujiang Yada, a specialist wiper blades company mainly supplying the European and America markets, faced a problem with a $1.5 million bill. In 2012, an American company offered to be their distributor in the US, and gave them an order worth that amount. The Americans put up no money in advance and asked for a six-month delay in payment.

Seven months after delivery, Yada had not received any payment for the goods it shipped and was accused by the American client of damaging its reputation. At that time, they realized they had suffered from the "Yang Lao Lai".

Fortunately, Yada was covered by export credit insurance, and the China Export Credit Insurance decided to pay 300,000 dollars immediately after analyzing Yada case, and another 700,000 dollars later to help the company overcome the crisis.

Apart from Yada, many other enterprises in Jiangxi suffered bad treatment, most of them being cheated by American companies. According to statistics of the past three years from the China Export Credit Insurance, America is the country involved in the largest number of losses followed by Italy and Germany.

According to Qiu Hongyu, an expert in the field, companies need to be aware of this risk no matter what the source.

Now, more and more foreign trade enterprises in Jiangxi have realized the importance of the export credit insurance. Until the end of 2014, more than 1,100 enterprises, about 41.2% of the total and 52.8% of the small enterprises had insurance, 13.6% higher than 2013.

《Thousand Jiangxi enterprises covered the export credit insurance to avoid 'Yang Lao Lai'》永久阅读地址: http://91kudian.com/yingyu/20385/