presented by: charles avaunzaff vice president global trade sales
DESCRIPTION
Global Trade Sales Presented to MBIA. Presented by: Charles Avaunzaff Vice President Global Trade Sales. Know Your Counterparty. Major Risks in International Trade. Country Business / Commercial Risk. Who should take the Risk and how are we going to get Paid ?. - PowerPoint PPT PresentationTRANSCRIPT
Presented by:
Charles AvaunzaffVice President
Global Trade Sales
Global Trade Sales Presented to MBIA
Know Your Counterparty
Major Risks in International Trade
• Country
• Business / Commercial Risk
Who should take the Risk and how are we
going to get Paid?
METHODS OF EXPORT PAYMENT
WHAT ARE THE OPTIONS?
• Open Account• Documentary Collection• Letters of Credit • Pre-Payment
Buyer Seller
Open Account
Documentary Collection
Letter of Credit
Pre-PaymentHigh
Low
RISK Low
HighRISK
Risks in Methods of Payment
STANDARD DOCUMENTS• BILL OF EXCHANGE OR DRAFT• TRANSPORT DOCUMENTS (OCEAN
B/L, AIR WAYBILL, TRUCK B/L)
• COMMERCIAL INVOICES• PACKING LIST• MISCELLANEOUS DOCUMENTS
OCEAN BILL OF LADING
• Receipt for the Merchandise • Contract of Carriage• Title to Merchandise
Letters of Credit
LETTER OF CREDIT
• OPENING BANK’S GUARANTEE THAT THE SELLER’S DRAFT WILL BE HONORED, IF THE TERMS AND CONDITIONS OF CREDIT ARE MET BY THE SELLER .
• MINIMAL RISK TO SELLER
Letter of Credit Payment Terms• Sight
– Payment is Due When Conforming Documents Are Presented
• Usance - Banker’s Acceptance – Payment is Due at a Later Date up to 180 Days– Can be Paid at a Discount Before Maturity
• Deferred Payment– Future Payment Undertaking Without Draft– Discount Difficult
INT’L COMMERCIAL TERMS
(INCOTERMS) • EX-WORKS• FAS (Free Along Side)• FOB (Free on Board)• CFR (Cost & Freight)• CIF (Cost, Insurance & Freight) • Others
Some of Union Bank of California’s Ex-Im Closings
• Solar panel exporter Northern California.• Grocery goods exporters in Northern
California • Software exporter in the Central Valley• Seafood exporter in the Pacific Northwest• Cosmetic exporter in Southern California• Publishing company in Northern California.
Current Ex-Im Deals Pending
• Environmental company in Pacific Northwest.
• Scrap metal exporter Southern California.• Gas valve exporters Northern California.• Environmental company Northern
California
Benefits for Prospects in UBOC Ex-Im Partnership
• Expedited loan approval process due to UBOC being a delegated authority lender
• Local Union Bank Trade Specialists navigate the program for the exporters.
• Structuring complex transactions with the support from Ex-Im Bank.
Other Ways GTS can Help!
There are other ways GTS can help import/export customers:
• Problem: Customer wants to increase export sales but is uncomfortable with non-payment risk (commercial & political) and cannot finance foreign A/R. Solution: Export credit insurance and potential UBOC financing of foreign A/R that is credit-insured by an acceptable insurer. GTS works with several reputable export credit insurance brokers & insurers.
• Problem: Customer wants to increase sales by offering invoices payable in local and/or USD. Solution: Work with F/X to provide dual currency invoices or simply invoices in local currency.
• Problem: Customer processes import or export payments through another bank but is not happy with the level of service. Solution: GTS performs a “diagnostic” and proposes a Web-based service solution at competitive prices.
Global Trade Sales Division
Thank You