Insolvency of the buyer
Projects management represents a major challenge for businesses. The risks are numerous and more important than sales of "simple" products or services because they require a high commitment and many competencies.
However, do not underestimate the risks associated with them, starting trade negotiations which shall incorporate a review of all binding contractual clauses for the buyer and seller. Projects are also attractive because they represent a important source of revenue in value and in duration.
Main risks to consider on Projects
Insolvency of the buyer
Loss of funding during the project
Manufacturing risk: cancellation of the order while the seller has already begun to produce,
Political risk (regime change, war ... etc.) including cases for export
Legal risk
Risk on guarantees granted to the buyer
Currency risk ... etc.
SLJ Vision provides seamless solutions to a wide range of clients by using teams across various industries , multiple product groups and geographies. Its rich experience in capital markets and strong institutional investor relationships help clients meet their financing and growth objectives.
Main risks to consider on Projects
Contractual for legal risks
Payment means and payment guarantees for credit risk
Payment schedule for liquidity risk
Downpayments and / or insurances for the manufacturing risk (in case of cancellation of the project while it is in progress)
Insurance for currency risk ... etc..
All these points must be supervised by specialists, and it is one of the complexities of the business world: have at its disposal all the skills (legal, credit, cash, bank guarantees, technical, commercial) to define commitments and responsibilities in an often complex and competitive environnement.
