OPTIMIZING GLOBAL TRADE
Matters dealing with Export Financing
1. Comply with the Letter of Credit Terms You need to carefully review the letter of credit once you receive it to make sure that the terms mentioned match those stated on your quotation. Additionally, you should look for any typos and incorrect information. This review of the letter of credit is essential because if …
What is a Letter of Credit? The Basics of Documentary Collection
Letters of credit are used in international sales transactions because they are versatile and secure and help to protect the interests of both the buyer and seller. When a buyer and seller have agreed on the terms of a sale and are ready to move forward with a transaction, the foreign buyer’s bank issues a …
What is a Documentary Collection? A documentary collection is a transaction where documents are used against payment collection. The exporter entrusts payment collection for a sale to its bank. The exporter does this by having its bank send the documents that the buyer needs to the buyer’s bank. Instructions on how to release these documents …
When dealing in international trade there are several ways that you can receive payment from your foreign buyers. The method that you choose to use is dependent on your company’s financial abilities, how trustworthy your buyers are and your products position in the countries that you want to sell to. There are five common methods …
Export transactions can be financed through the private sector (lending institutions) or through the US government. The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States. Ex-Im Bank enables US companies (large and small) to turn export opportunities into real sales that help to maintain and …