International Business Services: Importing
Maximize international cash flow & minimize risk
Overseas companies frequently require Letters of Credit (LCs), not always because of concern about your ability to pay, but because their banks require LCs to back the companies' working capital loans. With a Huntington LC you pay nothing until we have examined documents indicating the goods have been shipped. If we find discrepancies between the documents and what you had requested in the LC, we’ll hold payment until you authorize us.How do Huntington Import Letters of Credit help your business?
- Purchase the best goods available by complying with the manufacturer’s needs.
- Preserve your cash until goods have been shipped and documents examined.
- Rely on Huntington’s experienced staff to examine the import documents.
Global Trade Access® (GTA) automates your end of the complete Import Letter of Credit life cycle. Our customers helped us design it to be easier to learn, faster and simpler to use, and more complete than any other system.
Volume Requirements: Companies with at least 60 Letter of Credit payments per year will benefit from GTA, but it is especially helpful for companies with 200 to 10,000 payments per year.
- GTA’s intuitive design makes it easy to see what to do next.
- Lists present easy ways to find transactions without remembering reference numbers.
- Lookups let you find names, amounts and your own reference numbers quickly.
- Shortcut buttons perform common functions with one keystroke.
- Log in to Business Online, select "International" and click on "Global Trade Access."
- File Import takes data from your purchase order system and creates applications and amendments automatically.
- “Same As” models let you copy most of the detail with one mouse click.
- Toolbar buttons perform common functions with one keystroke.
- LC applications and amendments
- Dual signature security
- Status updates
- Full text electronic file copies
- Discrepancy notices and approvals
- Payment advices
- Complete history lookup with full text
- Comprehensive management reporting purchase order tracking
- Place an unlimited number of your purchase order numbers on each LC or Amendment.
- Find LCs and amendments by any purchase order number.
- Use up to 17 fields of purchase order information.
- Change the titles and sequence of the fields to meet your needs.
- Track what was ordered versus what was shipped across multiple amendments and payments.
- Extract payment information to spreadsheets or databases.
- Summarize information with extensive management reporting.
If you are importing, exporting or purchasing goods domestically, you may need financing for up to 180 days. A Bankers Acceptance is a low cost loan that covers the normal cash conversion cycle, for a specific shipment or lot of inventory.
Trade Bankers Acceptances
A Trade Bankers Acceptance (BA) originates as a draft under a Letter of Credit (LC), where the LC allows for payment on a future date. When the exporter presents complying documents, the bank “accepts” the draft as an unconditional obligation to pay in the future. The exporter can wait for the payment date, or sell the BA immediately for the principal amount less discount interest.
With Trade BAs, the exporter gets paid immediately without using their credit line. The importer still has up to 180 days to sell the goods and repay the loan.
Clean Bankers Acceptances
A Clean BA is just a short-term loan for the purchase of inventory. It does not require a Letter of Credit, and is usually used for domestic, not international, purchases.
You, as the buyer of inventory, simply present us with your promise to pay on a future date, and we “Accept” it. We then buy the Acceptance from you, giving you cash now (less discount interest) in exchange for your promise to repay us on the future date.
To qualify, the loan must be tied to new inventory that has moved at least 50 miles or across a state boundary. The term of the loan must be the lesser of 180 days, or the typical amount of time for you to turn the inventory back into cash.
How do Huntington Bankers Acceptances help your business?
- Importers using Letters of Credit can easily obtain financing for up to 180 days.
- Exporters using Letters of Credit can get funds immediately, while extending terms to their buyers.
- Buyers not using Letters of Credit have a quick and easy source of financing while selling purchased inventory.
There are times when you may need a bank to back up an obligation to a third party. You can do this with a Huntington Standby Letter of Credit. Standbys are used for a wide variety of purposes, replacing the need for:
- Bid bonds
- Performance bonds
- Down payments
- Evidence of financial responsibility
How do Huntington Standby Letters of Credit help your business?
- Widely accepted: Government agencies readily accept Huntington Standbys to support your obligations for self-insurance under Workers’ Compensation programs.
- Lower interest rates: Our high credit ratings mean that your bond issue, when backed by our Standby, can offer you a much lower rate of interest than you would pay for other types of debt.
- Reduced costs.
A foreign supplier may hesitate to sell to you on open account. You may want to avoid the cost and risk of making payment in advance, or the cost of using your credit line or letters of credit. A simple and inexpensive alternative is Documentary Collections.
With Collections, the supplier ships the goods, then sends the Bill of Lading, Commercial Invoice and other documents you may need to clear customs to Huntington. We contact you and release the documents to you in exchange for your immediate payment (“sight draft”) or promise to make payment on a specified future date (“time draft”).
How do Huntington Import Documentary Collections help your business?
- No need to tie up cash before shipment
- No need to use your credit line
Wire Transfer is a real-time method of transferring funds and supporting information between banks. Transfers can be made between banks within the United States, and around the world, while using the highest level of security. Occasional users can initiate wires through your Huntington Banker. Repetitive users can arrange for secure phone initiation, with pre-authorized repetitive instructions.
With Business Online, our online business access system, you can now initiate and track wires online through the Internet at a reduced cost. Incoming wire information is recorded on your account statement. Our optional fax advice service provides you with timely notice and full details. With Business Online you have immediate access to all the information through the Internet.
How does Huntington’s International Wire Transfer Service help your business?
- Send and receive funds quickly and reliably.
- Rely on Huntington to handle your transactions securely.
- Receive timely notification through our fax advice service.
- Gain complete control over your information with Business Online
Huntington is committed to providing the highest quality of customer service. We hold ourselves to the following quantifiable standards:
Issuance of new letters of credit and amendments:
- Same day issuance for electronic applications received by 12:00 noon ET
- Same day issuance for paper applications received with credit approval by 10:00 a.m. ET
Examination of Documents presented and advice of findings:
Documents presented in Columbus, Ohio to The Huntington National Bank
- Electronic notice of results available via GTA by 10:00 a.m. ET the same calendar day (as long as it is a business day in Columbus, Ohio).
- Average less than two-day turnaround on document examination and customer notification
- 99% within three days (UCP-600 allows seven days)
- Without Discrepancies - Day following examination of documents
- With Discrepancies - same day, if waiver of discrepancies received by 1:00 p.m. ET
For More Information, Contact
Phone: (877) 480-4685, Monday to Friday, 8:00 a.m. to 5:00 p.m. ET.