Export financing refers to a technique in which a business sells its invoices to a financial intermediary and advances cash to the business. It is also known as invoice or account receivable financing, which is different from traditional bank loans in several aspects including: As there is no need for any collateral in export financing, …
The letter of credit (“L/C”) is an important tool for settlement of international trade transactions, however many Canadian businesses may be unfamiliar with this payment instrument and its benefits. The applicable rules for letters of credit (“L/Cs”) are the UCP 600 (Uniform Customs and Practice for Documentary Credits, ICC Publication No. 600), which apply to …
International payment – Letter of Credit support and assistance service Read More »
Incoterms are internationally accepted definitions for the most common terms used in contracts for the sale of goods. Incoterms 2020 came into force on Jan. 1, 2020, superseding the earlier Incoterms 2010. What are Incoterms? Incoterms are formal terms used in most international sales contracts to reduce the logistical risks of doing business internationally. These three-letter acronyms mean the …
Exporting made safer: Managing risk with Incoterms® 2020 Read More »
To succeed in today’s global marketplace and win sales against foreign competitors, exporters must offer their customers attractive sales terms supported by the appropriate payment methods. Because getting paid in full and on time is the ultimate goal for each export sale, an appropriate payment method must be chosen carefully to minimize the payment risk …
The exciting part of international business and trade, some will suggest, is in the development and entry into new markets, in the enrichment that comes from experiencing different cultures and navigating the challenges of doing business in new environments. Certainly not in the area of finance! The reality is however, that you can get everything …
The impact of trade finance on your international business and supply chain Read More »