Import and export financing – Allowing business to go on globally.
Import and export financing exists to enable business to take place overseas. Import and export financing provides importers who have orders from customers in the United States, or foreign customers backed by a letter of credit, with the necessary financial backing to provide their overseas supplier with a letter of credit to guarantee payment of goods.
There are many reasons for a business to engage in this sort of financing. One big reason is that the financing can be arranged to cover 100% of the transaction. This provides the importer with sufficient financial strength to sell larger orders than they would be able to on their own financial strength. Depending on the strength of the buyer, this may be done on open account with the domestic buyer, allowing the buyer to increase their purchasing power.
The whole process works because the importer will supply you with basic information on the import company and their customers. You then evaluate the credit worthiness of the customers. For each of the approved customers, the importer will supply us with copies of purchase orders that are to be filled. We will then arrange a letter of credit to be issued to the suppliers’ bank with the supplier as the beneficiary.
Import and export financing can be found through a variety of resources online.