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.
- 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