QUESTIONS?
Chris Lidberg
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October 15, 2018
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Export Finance
You have shipped your product, payment is due, and the buyer claims they have made payment. As far as you can see, however, nothing has happened.
Does this sound familiar? I hope not, but if it does, let’s take a look at what might be causing the delay.
Chris Lidberg
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April 10, 2017
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Export Finance
In one of my previous articles, I wrote about back-to-back letters of credit (LC) and how banks, particularly in the United States, just don’t have an appetite for that type of business. This article is going to discuss two alternative to using back-to-back LCs.
Chris Lidberg
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June 24, 2016
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Export Finance
In a previous article, I wrote about selecting the appropriate payment term for your export sales. Let’s just assume that you’ve gone through the process of evaluating both the buyer’s creditworthiness and the country risk, and after a lot of research you've decided that the letter of credit (LC) is the way to go. Great!
Of course you don’t want just any old letter of credit. You want an LC that will best suit your needs, and that includes terms and conditions with which you feel confident that you will be able to comply. The best way for this to happen is to tell the buyer how you would like them to issue the letter of credit.
Chris Lidberg
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April 22, 2016
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Export Finance
An important part of an international sale is determining payment methods. The major options include cash in advance, collections, letters of credit or open account.
It can take a lot of time and effort to make this decision, but every minute you invest in this decision can mean the difference between money in the bank or writing off bad debt.
Chris Lidberg
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December 21, 2015
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Export Finance
My last article covered transferable letters of credit (LC) and how they may be a more acceptable alternative to a back-to-back letter of credit. This article is going to cover another alternative: an Assignment of Proceeds.
Chris Lidberg
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October 26, 2015
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Export Finance
If you ever want to send a chill down the spine of your banker in the United States, just mention the phrase “back-to-back letters of credit.”
Chris Lidberg
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June 4, 2006
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Import Basics,
Export Finance
Chris Lidberg
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March 12, 2006
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Export Finance
I’m sure everyone, at some point in their lives, experiences a situation where they can see the solution with crystal clarity when others see nothing but confusion. I had my moment of clarity when the UCP 500 was first published and I read Article 13c.
It reads: “If a credit contains conditions without stating the document(s) to be presented in compliance therewith, banks will deem such conditions as not stated and will disregard them.”
Chris Lidberg
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January 22, 2006
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Export Finance
Chris Lidberg
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September 1, 2003
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Export Finance
The Uniform Customs and Practice for Documentary Credits (UCP) is published by the International Chamber of Commerce and was revised in 1993 and put into use January 1, 1994. The purpose of the UCP is to clarify gray areas that may appear in a letter of credit and to help banks interpret conditions in the letter of credit in a consistent manner.
However, as anyone who has ever worked with a letter of credit knows, there is plenty of disagreement between all parties concerned. Banks, account parties, and beneficiaries can all disagree about what complies and what does not comply when the shipping documents are checked against the terms of the letter of credit.