Professional Documents
Culture Documents
Agenda
Trade Finance
Working Capital Loans
for exports
Foreign Receivable
Financing
Foreign Buyer Financing
Overseas Investment
Financing
Risk Comparison
INTERNATIONAL
METHODS OF PAYMENT
INTERNATIONAL
METHODS OF PAYMENT
Trade Terms
Exporter Risk
High
Open Account
Importer Risk
Documentary Collection(Time)
Documentary Collection (Sight)
Letters of Credit (Time)
Letters of Credit (Sight)
Cash in Advance
Low
Documentary Collections
Draft or Documents Against Payment Or Acceptance
Time of Payment: SIGHT at time of presentation of the
draft
Time of Payment: TIME at a future date.
Goods available to Buyer: after payment if ALL Ocean
Bills of Lading are included with the documents and after
the cargo has arrived.
Risk to Seller: possible non-payment of the draft.
Risk to Buyer: has assurance of shipment, but Seller may
not ship goods as ordered. Must pay to get title to goods.
Not recommended for sales on extended terms
Documentary Collections
Benefits
More secure than Open Account
Goods available to Buyer: after payment if ALL Ocean
Bills of Lading are included with the documents and
after the cargo has arrived.
Risk to Seller: possible non-payment of the draft.
Risk to Buyer: has assurance of shipment, but Seller
may not ship goods as ordered. Must pay to get title to
goods.
Dont encumber Buyers line of credit
Inexpensive
Letters of Credit
Benefits
More secure than Open Account
Foreign Bank promises to pay exporter if documents
are in compliance with letter of credit
Goods available to Buyer: after payment if all Ocean
Bills of Lading are included with the documents and
after the cargo has arrived.
Risk to Seller: LC void if seller docs are not in
compliance, i.e. have discrepancies
Risk to Buyer: has assurance of shipment, but Seller
may not ship goods as ordered. Must pay to get title to
goods.
Versatile can build in terms for buyer and still have
assurance of payment from overseas bank
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ELIGIBILITY
A business must meet SBAs industry size standards and have been
in business for at least 12 continuous months
SunTrust Bank is a delegated lender for SBAs Export Working Capital
Guarantee Program
One of few banks in country to be awarded this designation
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Short Term & Medium Term Insurance Policies, Multi Buyer or Single Buyer
Policies
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Contact:
Marsha Sompayrac
Director, Global Trade Solutions
919 E. Main Street, 2nd Floor
SunTrust Bank
Richmond, VA 30303
Tel: 804-782-5558
Marsha.Sompayrac @ Suntrust.com
Hai-nah Ellison
Vice President, Global Trade Solutions
919 E. Main Street, 2nd Floor
SunTrust Bank
Richmond, VA
Tel:Banks,
804-782-7476
Copyright 2005 SunTrust
Inc.