YataPayment Secure helping business build better export partnerships.
Huge export opportunities have opened up for the agriculture sector as emerging markets develop and their economies. Advances in technology and transportation have made it easier and more cost-effective for exporters to reach these markets.
YataPay helps agricultural business expand into emerging markets such as Africa, South America and Asia with confidence.
However, exporting agriculture products to emerging markets can present significant payment problems for exporters.
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The lack of established financial systems in some markets mean exporters may have to rely on less secure methods such as bank transfers or even cash payments.
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The volatility of exchange rates make it difficult to accurately price products and plan for future sales.
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Political instability in some emerging markets can lead to sudden changes in regulations and policies, further complicating the payment process.
The Problems with Letters of Credit
Letters of credit are a common payment solution for international trade, including agriculture exports from the UK. However, letters of credit are:
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Involve a complicated process with a significant amount of documentation and involve multiple parties, including banks and shipping companies.
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There are regular delays and errors in the process mean it an take weeks or months to set up.
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Discrepancies between the letter of credit and the shipping documents result in rejection of the documents and delay in payment to the exporter.
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When dealing with banks in emerging markets issuing banks may become insolvent or fail to honour the letter of credit, which can result in non-payment for the exporter.
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The cost. There are additional costs associated with letters of credit, including bank fees, insurance fees, and inspection fees. These costs can add up and make exporting more expensive for the exporter.
56% of Export Letters of Credit are Rejected at First Presentation.
Use YataPay Secure to mitigate the risk in export payments
- YataPay has experience working with agricultural exports.
- Our escrow is flexible and less complex than letters of credit.
- It provides security by holding funds in a neutral account until the terms of the transaction are fulfilled.
- It reduces the risk of fraud or non-payment associated with exporting agricultural products to emerging markets.
