{"id":305,"date":"2019-01-29T12:29:47","date_gmt":"2019-01-29T08:59:47","guid":{"rendered":"http:\/\/imansoltani.ir\/main\/?p=305"},"modified":"2019-01-29T12:29:47","modified_gmt":"2019-01-29T08:59:47","slug":"why-iran-is-a-credit-market-cash-business-model-wont-work","status":"publish","type":"post","link":"http:\/\/imansoltani.ir\/main\/2019\/01\/29\/why-iran-is-a-credit-market-cash-business-model-wont-work\/","title":{"rendered":"Why IRAN is a credit market &#038; Cash business model won`t work?"},"content":{"rendered":"\n<p>I have been faced with \nmany cases that when I was negotiating or consulting a client for IRAN \nmarket entry, from the client side, doing business in cash method was \nthe only option. For some that was the dead end &amp; stopper for doing \nbusiness in IRAN and for others after a while, they adapted to this \nmarket. Usually &#8220;Cash-and-carry&#8221; refers to a business model that \nvirtually excludes all credit transactions, requiring up-front payment \nfor all goods and services.<\/p>\n\n\n\n<p>Doing cash business and deals are very ideal and will reduce the risk\n and help the cash-flow but when it comes to IRAN many companies have \ntried and could not be able to implement such approach and the following\n are the main reasons why:<\/p>\n\n\n\n<ul><li>Customs clearance, which is time-consuming, complicated and \nunpredictable procedure. depending on which port you choose for \nimportation, the normal duration to get the stock cleared is between 30 \nto 45 working days and in some cases can go more than that which is \nbeyond your control. That is why cash payment is not a good option in \nmany cases for Iranian companies.<\/li><li>The nature of IRAN market is based on credit sales (PDC), it means \nalmost every layer in the RTM funnel is doing business based on credit \nterms. The term will be defined based on the product, for example for \nIPhones, it is from 7 up to 15 days PDC payment. This means that after \n30 to 45 days waiting to get the stock cleared from the custom, when the\n sales happens, collecting the money is not going to happen immediately \nand takes time.<\/li><li>The interest rate in IRAN is among the highest in the world and \nthere are two kinds of rates, open market (36% annual) and the Banking \ninterest rate is around (18% annual). This factor must be considered and\n added to landed cost depending on the term the product will be sold.<\/li><li>Because of political issues in IRAN, usually, the local companies \nwhen it comes to working with foreign companies\/Vendors, don&#8217;t like the \ncash business model. first of all having credit line from the other side\n will give them confidence and they will consider the relationship more \nlike partnership. The other point is that from their side, having credit\n line is a sign that of the Vendor is serious about IRAN and the \nrelationship will be long term.<\/li><\/ul>\n\n\n\n<p>Don&#8217;t Reinvent The Wheel, Unless You Plan on Learning More About Wheels!<\/p>\n\n\n\n<p>Iman Soltani<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I have been faced with many cases that when I was negotiating or consulting a client for IRAN market entry, from the client side, doing business in cash method was the only option. For some that was the dead end &amp; stopper for doing business in IRAN and for others after a while, they adapted [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":306,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/posts\/305"}],"collection":[{"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/comments?post=305"}],"version-history":[{"count":1,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/posts\/305\/revisions"}],"predecessor-version":[{"id":307,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/posts\/305\/revisions\/307"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/media\/306"}],"wp:attachment":[{"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/media?parent=305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/categories?post=305"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/imansoltani.ir\/main\/wp-json\/wp\/v2\/tags?post=305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}