International Trade Services
Importers and exporters rely on letters of credit, documentary collections and bankers' acceptances to settle transactions. We offer expertise, efficient processing, state of the art technology and global reach.
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Letters of Credit
Letters of credit are valuable tools when used to settle payments in transactions for goods and services, both imported and exported. They help protect buyers and sellers against potential error and credit risk. We can assist you in tailoring these instruments appropriately to fit your specific business needs.
- Import: Import letters of credit can be critical for businesses who rely on goods from overseas suppliers or vendors. They are used to ensure accurate and timely payment to these suppliers, once the necessary terms and conditions of the letter have been met. These flexible instruments can be structured to provide buyers with extended payment terms.
- Export: When you have complied with the terms and conditions, export letters of credit provide an assurance that you will receive payment. Since they are issued by the importer's bank, they reduce the credit risk associated with international trade.
- Standby: Used both domestically and internationally, these instruments are often crucial to your business. We have the technical expertise and the credit capacity you will need to structure and issue Standby Letters of Credit.
Documentary Collections
Documentary Collections are a simple alternative method of payment available to companies involved in international trade. Basically, payment is made on a collection basis after the necessary documents and drafts have been received by the intermediary bank. There are both benefits and risks to documentary collections, and they are widely used in international trade. We can advise you on the methods that best meet your import and export collections needs.
- Import: The import documentary collections process is an alternative to a letter of credit. You simply request that the necessary documents and draft from the exporter's bank are presented through us. Due to this simplified process, expenses are less than with other methods, such as letters of credit.
- Export: As with import, export documentary collections are also simpler and less expensive than letters of credit. You can either draw a draft for immediate or "at sight" payment, or for a future date. Sending them as Direct Collections saves time and reduces payment delays.
Bankers' Acceptances
A Bankers' Acceptance is a short-term fixed rate loan used to finance trade-related transactions. There are two distinct ways that bankers' acceptances can be utilized.
- As an extension of a letter of credit to defer the time that payment is due to you as an exporter or made by you as an importer, but with the direct and unconditional obligation of the accepting bank.
- As an often lower cost and fixed-rate method of financing a purchase or sale of goods.
Need more information?
Read our frequently asked questions to get more information about our international products and services.
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