presented by: charles avaunzaff vice president global trade sales presented to mbia
TRANSCRIPT
Presented by:
Charles AvaunzaffVice President
Global Trade Sales
Global Trade Sales Presented to MBIA
Buyer Seller
Open Account
Documentary Collection
Letter of Credit
Pre-PaymentHigh
Low
RISK Low
High
RISK
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
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.