How to hire for Export Finance Manager?

Summary:

Export Finance is the term to describe the specialist range of finance focused on the export market. Export financing aims to support businesses reaching an international market. Once a shipment has left domestic customs, there can be a significant time period while the goods are in transit and are then collected by the importer. Especially where emerging markets are concerned, the ability to extend attractive payment terms to the importer is often a huge part of winning an order. Export finance aims to maintain positive cash-flow cycle during the gap.

Standard Job Description:

Export finance manager (sometimes classified as ‘trade finance manager’) can help exporters release working capital from cross-border transactions that would otherwise be tied up in customer invoices and purchase orders (POs) for up to 120 days. These facilities are typically standalone from bank lending; therefore, they do not get in the way of existing facilities or appear on balance sheets.

In broad terms, sellers of goods or services want to get paid as soon as possible (even before trading) and buyers want to delay payment
for as long as possible to maintain liquidity and give themselves time to sell on to the end-customer. In this scenario, export finance providers can offer financial guarantees and bridge the finance gap from outlay to payment as well as establish trust between the seller and buyer.

Export finance manager takes many forms, helping to reduce cash flow problems with payment guarantees from a customer when goods are being exported, advance payments for access to additional working capital and the discounting of customer invoices to avoid payment delays.

Export factoring can bring considerable cash flow benefits to exporting businesses.

Key Job Responsibilities:

1. Working and liaising with Ministry of Commerce, Customs etc. to deal with issues in exports and other representations

2. Creating and delivering presentations for buyers and distributors for assigned region

3. Acting as a center of competence for the trade finance instruments portfolio management for the cluster countries.

4. Providing expert advice on trade finance instruments structure during the negotiation of and after the export sales contract is concluded.

5. Providing relevant advice and risk mitigation activities in case of non-standard instruments being requested.

6. Responsible for Knowledge of local legal environments, implications for the issuance of trade finance instruments, know-how of specific local
instruments such as sureties, etc.

7. Driving standardization of F&B trade finance instruments wordings (standard templates, bank templates, global library, promotion of usage of international standards etc.).

8. Maintaining bank guarantee portfolio (new issuance, amendment, extend or pay, claims, closing, free formats).

9. Participating in Planning and Budgeting activities of Global CoE Trade Finance.

10. Supporting the Trade Finance Link development by providing input on identified, potential improvements.

11. Supporting importing country in maintenance of existing or requesting of a new stand-alone credit line.

12. Providing input on the bank performance / satisfaction survey preparation. Responsible for Submission / lodgments of export documents
to the bank & give disposal instruction for forex realization.

13. Preparing documents for Foreign Remittance (TT Payment) for Import & Service-related payment.

14. Preparing and maintaining data for Letter of Credit (LC) including Inland & Foreign & Bank Guarantee.

15. Responsible for Forex and Derivative hedging and rate negotiating with bank dealer.

16. Responsible for Online payment of Customs duty, Statutory payments, supplier payments, Salary, Bank to Bank RTGS/NEFT and other
General payments.

Ideal Candidate:

1. CA/ ICWA with at least 8 to 10 years of similar experience.

2. In depth knowledge of the Traditional Trade Products and Commercial Letters of Credit, Standby Letters of Credit, Documentary Collections, Bankers Acceptances and Financing Solutions.

3. Supply Chain Finance Products knowledge is a plus and preferred.

4. Ability to Develop and implement objectives, policies and procedures for Trade Finance.

5. Ability to develop advisory relationships with clients, stakeholders and business partners.

Desired Education:

BS/BA in business, finance, accounting, economics or similar technical field

Certifications Associated:

1. CA

2. ICWA

Key Skills:

Debt Market operations, Central Coordination, Sales Support, Business Risk & Control Monitoring, Operation management, Trade Finance, bank
guarantees, letter of credit., internal audit, budgetary analysis, debt financing, International Banking, SME Banking, Corporate Loans, Portfolio
Management, Institutional Management.

Common Positions:

1. Trade Finance Manager

2. Export Finance Analyst

3. Subcontracts Manager

4. Global Trade Compliance Manager

5. Export/ Trade Manager

Screening Questions/Assessment Parameters:

A recruiter should consider the following as assessment parameters-

1. Experience International Business Development, Trade Finance/Corporate Finance, Treasury, Management.

2. Experience in handling compliance and legal aspects of export business.

3. Experience in handling Traditional Trade Products and IT (Tangible or Intangible) Products.

4. Experience or knowledge in the finance side of Supply Chain.

For in-depth interview questions, please refer to the below-

https://www.tradefinanceglobal.com/posts/top-questions-trade-financier-asks/

Basic Terminologies:

1. Export Factoring Company. This factor or factoring company buys the exporter’s foreign accounts receivables and provides an advance to the business of up to 80% of the value of the invoice typically without recourse where the factor assumes full liability for non-payment.

2. Accounts receivable insurance (ARI) An insurance policy purchased from a financial institution or export credit agency (ECA) that exporters may obtain to help secure their receivables in case of non-collection.

3. Advance payment A payment to a seller in advance of the goods being shipped.

4. Beneficiary. Someone who is eligible to receive distributions from an insurance policy or some other form of trade finance instrument.

5. Blocked currency A currency that is not available to be exchanged for any other currency, usually due to restrictions from the national government, also referred to as non-convertibility/transferability of currency.

6. Contingency plan An activity undertaken to plan the proper and immediate follow-up steps to be taken by management and employees in
an emergency.

7. Demurrage. Charges incurred when a shipment must be stored in a warehouse during transit from the exporter to the importer.

8. Exchange rate. The price of one currency in terms of another, i.e. the number of units of one currency that may be exchanged for one
unit of another currency.

9. Expropriation. The act of taking possession of private property for government purposes.

10. International Chamber of Commerce (ICC). A Paris-based organization that plays a key role in international trade through its Uniform Customs and Practice for Documentary Credits (UCP) and other quasi-regulatory articles that provide the infrastructure for trade among over 160 nations that have voluntarily agreed to be bound by these articles.

Industry Jargons:

1. Incoterms rules. A set of standardized and internationally recognized trade terms established by the International Chamber of Commerce (ICC). They are routinely referenced in contracting and trade finance and are critical for resolving contractual disputes.

2. Price ceiling. A limit imposed through legislation to control price increases.

3. Pricing strategy. A planned approach to pricing within the overall marketing strategy for the target market.

4. Receivables. An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers.

5. Retention/holdback. A contractual condition in which money is withheld until a specified time frame passes that ensures the products received are satisfactory.

6. Surety company. A financial entity, typically an insurance company, which assumes the risk of a surety bond project owner(obligee) by guaranteeing payment on the bond or performance of an underlying contract, in the event of a default or a failure of the contractor (principal)
to perform its contracted services.

7. Uniform Customs and Practice (UCP). A set of quasi-regulatory articles governing all aspects of the use of letters of credit (L/Cs).

8. Uniform Rules for Collections (URC). A set of rules published by the International Chamber of Commerce (ICC) to aid bankers, buyers, and sellers in the collections process.

9. Warranty. A warranty entitles the other party to claim damages for breach of contract but not to reject the goods or repudiate the contract.

10. Wire transfer. The electronic transfer of funds through the cable and wireless networks that unite the world’s banking system, also called cable transfer or bank wire.

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