Financing Exports Through Your Bank

• Banks like export collections because:
  • There is evidence of the movement of goods.
  • There is the likelihood of the buyer paying for the goods.
    • Proceeds can be used to pay the bank in advance.
  • There is a strong probability the transactions will be monitored independently of the exporter.
  • Financing may be provided on a transaction-by-transaction basis.

• Banks are more eager to lend when there is credit insurance.
  • Credit insurance can be obtained from government agencies established to promote exports.
    • International Banks

• Make sure your bank abides by the International Banking Standard Practice (IBSP) for Uniform Customs and Practice for Documentary Credits (UCP600).

---

---

© 2004 - 2009 John Michael Pierobon

Notes