Find Your Financing Now as Suppliers won’t be taking Mastercard…
The China Import / Export Fair, or formerly known as the Canton Fair is fast approaching…there are still seats on the planes but they are filling up by the second.
US buyers often frequent this fair to meet with long time suppliers to see what is new and to strengthen existing relationships.
However, even long time buyers have difficulty getting credit from their Chinese suppliers. PMF Bancorp is a long time partner of the Canton Fair and has provided trade financing to many of their buyers and suppliers over the years. Many of our clients use PMF Bancorp’s trade financing solutions.
Many US businesses take for granted the ability to get terms or credit from their US suppliers. Internationally, the credit systems are much stricter because the judicial system is not nearly as effective as in the US. In the US, if a Supplier is not paid, they are able to proceed with legal action that is meaningful, but in countries like China, India and other developing countries, the legal system can take years for a court case to be resolved or even heard at all, and then collecting might not even be effective. So international businesses are more careful and typically will not provide terms to most buyers, especially foreign buyers.
The US buyer needs to think: “BRING YOUR OWN FINANCING” or “BYOF”, not to be mistaken with “BYOB” for the beer lovers in our midst. US buyers are commonly looking for financing solutions.
There are many solutions for financing your international trade and imports.
Sign up for the Canton Fair Now
The main financing solutions for International Trade can be described as follows:
For Importing Goods:
- Issuing a Letter of Credit to the foreign supplier (more info)
- PO Advance financing (more info)
- Borrowing from your Mom and Dad (limited -no info on this)
For Exporting Goods:
- One Factor Direct Financing Process (more info on Supply Chain Factoring)
- Two Factor Exporting Process (more info on Supply Chain Factoring)
- Ex-Im Guarantee (more info on Supply Chain Factoring)
- Traditional Bank lines of credit (however, many banks will not permit foreign collateral transactions)
PMF Bancorp has been financing businesses for the last 2 decades successfully with customized financing plans to meet most businesses needs. Feel free to contact us to discuss a plan that suits your businesses needs.
