Research On Risks & Prevention Of International Settlement Of Shenyang Decoration Import & Export Company

With the enlargement of import and export, enterprises engaged in foreign trade are facing more and more international settlement risks. Especially there are many economical losses caused by choosing wrong payment methods and ignoring the risks under each payment method. So it is very important for enterprises engaged in foreign trade to study various payment methods in international trade, understanding their potential risks and using different payment methods to prevent of settlement risks.The article is started from the introduction to International settlement and three main payment methods (Remittance, Collection and Letter of Credit). It also introduces international settlement risks for enterprises and the various risks often faced by exporters under three main payment methods, comparing the features of these three payment methods and explaining the effecting factors of choosing payment methods. Then the article introduces the current settlement situation of studying object-Shenyang Decoration Import & Export Company. The article adopts qualitative mixed with quantitative analyses and theoretical mixed with empirical research methods to analyze its main problems and risks in international settlement, comparing the risks. Then it analyzes the outer factors and inner factors which causing risks to be occurred, pointing out its defects in management and actual business. Actually the credit risk faced by Shenyang Decoration Import & Export Company in international settlement is caused by the defects in all the sections of management and lacking of credit management.Therefore, the author points out to establish scientific interaction system in the Company and control all the parts of business sections so that the risks of international settlement can be prevented. Then, in viewing the actual business, the author gives the preventing measures for the risks under these three payment methods. At last, the author suggests the Company should use credit insurance to increase its ability of risks prevention.