International Business Services: Exporting
From small companies just testing the international markets to large import/export companies, our Trade Service Professional can bring a level of responsiveness few others can deliver.
From dedicated team members with language and cultural skills to our Delegated Lending Authority with ExIm Bank, your company can benefit from our international experience.
Huntington, working in conjunction with the Export-Import Bank of the United States (“ExIm Bank”), offers an Export Working Capital Guarantee Program to assist small and medium-sized businesses that want to export, but need funds to support their pre-export working capital requirements.
How does Huntington Trade Services help you:
- As a Delegated Authority Lender with ExIm, we can potentially streamline the loan process.
- Increase an Exporters borrowing base.
- Potential to borrow up to 90% of foreign account receivables and 75% of eligible export-related inventory, including work-in-process.
Huntington, working in conjunction with ExIm Bank, offers term loans to foreign buyers of U.S. made equipment.
Benefits to Foreign Buyer
- Financing up to 85% of the contract value.
- Repayment terms starting at 5 years. Benefits to US Exporter
- Tool to increase international sales, particularly in emerging markets.
- Easier access to emerging markets.
- Help reduce payment risk when selling internationally.
Do you receive checks drawn on foreign banks or denominated in a foreign currency? Huntington will clear the checks and deposit the money into your account.
Check Collections are useful for one or two items at a time. Companies receiving larger volumes of checks will want to use our Direct Foreign Cash Letter forms to speed processing and reduce costs.
With the approval of your Huntington Banker, we can arrange to deposit funds into your account even before we receive reimbursement from the foreign bank. Of course, the deposit is subject to reversal if the foreign item is eventually returned unpaid.
- Turn foreign denominated checks into US dollars in your account.
- Speed processing and reduce costs with our Direct Cash Letter form.
- Receive funds quickly with approval for immediate deposit.
A risk mitigation tool, Trade Credit Insurance, protects suppliers against the risk of non-payment of goods or services by their customers. Coverage can be provided for domestic risk (buyers in the same country) or export risk (buyers located in another country).
The insurance typically covers non-payment due to insolvency of the buyer or non-payment after an agreed number of months after payment was due (often referred to as protracted default). The coverage may also insure against the risk of non-payment following an event outside the control of the buyer or the seller such as political risk, where money cannot be transferred from one country to another.
Reduce the risk of your overseas buyer’s non-payment or slow payment with a Letter of Credit (LC) from your buyer’s bank.The LC is the bank’s promise to pay you upon your submission of certain documents showing that you have shipped the goods. As an Advising and Negotiating bank, Huntington acts as your conduit to the foreign bank and follows up to ensure you get paid quickly.
You may want to pass the risk to Huntington in the form of an LC Confirmation. In this case, we promise to pay you upon our receipt of the required documents regardless of whether the buyer and the bank are still able to pay.
Would you increase sales if you offered the buyer up to 180 days to pay? We can easily structure the LC so that the buyer receives payment terms, but you get a Bankers Acceptance: the bank’s unconditional obligation to pay you.
If you prefer, we will pay you now (less discount interest), then wait for the foreign bank to reimburse us. The discount rate may be less expensive than most other types of loans available, and it doesn’t affect your credit line, since we view it as a loan to the foreign bank.
- Shift your risk from your buyer to your buyer’s bank.
- Reduce your risk further with Huntington’s LC confirmation.
- Safely extend terms to increase your sales with Bankers Acceptances.
- Improve your cash flow by discounting the Bankers Acceptance with Huntington.
- Reduce your financing expense while freeing up your credit line.
- Rely on Huntington’s experienced people to help you craft detailed instructions for your buyer.
If any of the following is true, contact us for more information.
- You don’t know the buyer or you are uncomfortable extending credit to them.
- Your buyer is in a risky country.
- Your buyer wants time to pay, but you want your money upon shipment.
- You are selling to a country where LCs are customary.
Are your overseas buyers slow in paying? Do they want extended terms? Could you increase sales if you could better manage the risk?
One way to reduce your risk is to maintain control over the documents your buyer needs to take possession and legal title of the goods and to clear customs. By holding the Bill of Lading, Commercial Invoice and other documents until the buyer pays, you’re much more likely to receive prompt payment of the full amount.
Acting as your agent, Huntington does the work for you. We’ll send your documents and instructions to our correspondent bank closest to your buyer. They’ll contact the buyer, and exchange the documents for payment. If you have allowed for it, we will exchange the documents for the buyer’s acceptance of the draft, creating an unconditional payment instrument due on the date you have specified.
Huntington will maintain electronic communications with the foreign bank, following up to ensure receipt and to track the progress. If you use collections frequently, we will send you monthly reports itemizing activity and listing outstanding items.
- Reduce your risk by controlling the documents.
- Get your buyers to pay on time.
- Increase your sales by offering extended terms.
- Save on banking fees if the alternative is a letter of credit or export insurance.
- Save time by allowing us to handle the collection activity.
- Monitor your collection activity through our monthly reports
If any of the following is true, contact us for more information.
- An existing buyer is becoming slow in paying.
- You are concerned about your buyer’s credit, but don’t want to require a letter of credit.
- You could make more sales if you allowed extended terms.
- You are selling to a country where collections are customary.
For More Information, Contact
Phone: (877) 480-4685, Monday to Friday, 8:00 a.m. to 5:00 p.m. ET.