In today’s global marketplace, you want a reliable banking point of contact to help you facilitate trade and grow your overseas markets. Trust Florida Community Bank, N.A. to understand your unique trade finance challenges and to provide the guidance and services you need. FCB has the experience, technology and financial strength to successfully support and facilitate overseas sales and purchases for businesses of all sizes from small to multi-nationals of all sizes.
An Import Letter of Credit can help you avoid some of the inherent risks of prepaying for goods to an exporter. It allows you to set the documentary terms and conditions the supplier must meet in order to be paid. It also provides an irrevocable undertaking from a financial institution to the supplier, providing them a level of comfort as well.
If you are an exporter, sales are important–but assurance of payment is even more important. An Export Letter of Credit can provide an assurance of payment to you based on your fulfillment of the documentary terms and conditions outlined in the letter of credit.
A Standby Letter of Credit can be used to insure against either non-payment or non-performance and are often substituted for cash deposits or as performance or bid bonds in both international and domestic transactions., when your own credit may not be known or readily accepted.
A Transferable Letter of Credit is simply a letter of credit that permits the beneficiary of the credit to make some or all of the credit available to another party, thereby creating a secondary beneficiary. When you are an exporter serving as an intermediary, you may receive a letter of credit from a buyer in your favor to secure the purchase of goods to be exported. If the letter of credit allows you the ability to transfer the credit, you may wish to partially or fully transfer it to the manufacturer or provider of goods.
This may provide a method of reselling goods without using your source of credit or funds. Upon transferring, the supplier would be responsible for shipment and have control of payment upon complying with documentary terms and conditions. If credit is partially transferred, upon your fulfillment of conditions via documentary requirements you would also receive the portion due per the credit terms.
FCB will work closely with you to understand your unique needs and help you structure
the L/C details.
An Assignment of Proceeds can provide you with a vehicle for reselling goods without using your source of credit or funds. When exporting, you may be purchasing products from a manufacturer or provider of goods. As you receive a letter of credit from a buyer in your favor, it may be possible to assign partial proceeds of the credit to the provider of goods, so that you may secure the product and ship to buyer to fulfill the credit terms for payment. As the credit remains in your favor, you have full control over the shipment and payment. Upon meeting the credit’s terms and conditions, the assigned amount and any net amount due to you would be paid in accordance with credit terms.
A Banker’s Acceptance can provide lower financing costs for your trade transactions. These negotiable instruments are short-term, fixed rate and used in documentary (letter of credit or collections) transactions covering imports and exports.
An exporter and importer may also opt for an arrangement of payment using a documentary collection. In this scenario, an exporter or importer would forward the shipping documents through FCB, which would serve as the intermediary in the collection process. Documentary collection provides a flexible, less costly option when the protection afforded by a letter of credit is not required for commercial and country risks, or if there is a long-term, stable business relationship between the parties.
Due to delays in remitting shipping documents, you may be unable to retrieve imported goods at the port/airport that are covered under a letter of credit, which can be very costly to your business. FCB can assist in providing you a Steamship Guarantee/Air Release, allowing you to take delivery of your goods in lieu of the title document.
FCB can also provide guidance in the above processes, and can help you decide when these products would best suit your needs.
To learn more, please contact FCB Trade Finance Services at (954) 984-3359.
2500 Weston Road
Weston, FL 33331