David Noah
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March 17, 2021
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Export Finance
You’ve established that a letter of credit is the best form of payment for your international sale. Now, you must pay special attention to make sure you correctly complete not only the letter of credit, but the entire process.
We spoke with John A. Novak, former vice president of International Services at Bremer Bank N.A., headquartered in St. Paul, Minn., to learn about the common mistakes exporters make when completing letters of credit. Here’s what he shared:
Catherine J. Petersen
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March 8, 2021
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Export Finance
As an exporter, you focus on selling your goods and getting paid for those sales. How you structure those sales and the payment option you choose will increase the likelihood of both.
You and your customer will assess many factors as you negotiate the payment term that will be used for your export transaction. They include, but are not limited to:
Joseph A. Robinson
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July 27, 2020
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Export Finance
American Chambers of Commerce, traditionally referred to as AmChams, are formed to advance the interests of American overseas businesses through advocacy, information, networking and business support services.
There are currently 118 AmChams in 105 countries affiliated with the U.S. Chamber of Commerce that strive to develop mutually beneficial social and commercial relations between American companies and those of the host country.
David Noah
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April 15, 2020
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Export Finance,
Export Basics
What’s the most rewarding, and sometimes frustrating, aspect of being an exporter for you? For many, it’s simply getting paid on time and in the correct amount.
The rewarding part is self-explanatory. Obviously, we need to be able to earn a living! But the frustrating part is worth considering.
Take a look at these 10 terms and see if they can help you better understand the payment process (so you can make a profit sooner!).
David Noah
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November 18, 2019
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Export Finance
In an ideal world, a seller always gets paid before they ship their goods.
In an ideal world, a buyer always receive their order before they pay for their purchase.
Obviously, both the buyer and seller can't live in an ideal world. Their ideal worlds conflict. Most likely, neither party lives in an ideal world, so they need to work together to find the right payment term that will meet both their needs. This is particularly true in international trade.
David Noah
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October 21, 2019
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Export Finance
For exporters, any sale is a gift until payment is received. For importers, any payment is a donation until the goods are received. Successful exporters and importers recognize this conundrum and are able to negotiate payment terms that recognize the inherent risk and yet meet the needs of both parties.
There are five primary methods of payment in international trade that range from most to least secure. Of course, the most secure method for the exporter is the least secure method for the importer and vice versa. They key is striking the right balance for both sides. This article focuses on open account.
David Noah
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September 23, 2019
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Export Finance
There's no point in getting involved in international trade if you're not getting paid for your exports. It's up to you as the exporter to choose an appropriate payment method that minimizes payment risk while also accommodating the needs of the buyer.
There are five primary methods of payment in international trade that range from most to least secure. Of course, the most secure method for the exporter is the least secure method for the importer and vice versa. They key is striking the right balance for both sides. This article focuses on documentary collections.
Roy Becker
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September 2, 2019
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Export Finance
Many exporters become frustrated when they have shipped goods and then have to prepare documents to conform to the terms of the letter of credit. They suddenly realize they have to prepare or find certain documents that they did not anticipate, or they cannot meet other surprise requirements.
One frustrated exporter exclaimed, "Why would a foreign bank write a letter of credit with all these unacceptable terms and conditions?"
What a great question to ask! Let’s discuss it and find the answer.
David Noah
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August 19, 2019
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Export Finance
One of the most important international trade considerations is how you are going to get paid for your exports. While relying on cash up front may eliminate the risk of non-payment, it limits your universe of potential customers since it can cause cash flow and other problems for the buyers.
There are five primary methods of payment in international trade that range from most to least secure. Of course, the most secure method for the exporter is the least secure method for the importer and vice versa. They key is striking the right balance for both sides. This article focuses on letters of credit.
Catherine J. Petersen
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August 12, 2019
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Export Finance
Dear Cathy,
Our firm has just begun to use letters of credit for our transactions, and I am the only one who is responsible for preparing all of the documents. What a headache!
Here's a situation that I faced just last week: The buyer's forwarder is booking the cargo with the ocean carrier. He told me that the earliest we can get our product on the ship is in two weeks, but that is after the unconfirmed letter of credit expires for shipping. Our customer is in India. They told us in an email to just go ahead and ship the goods and they will advise their bank to waive the discrepancies.