Export Payment Terms

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• Export Payment Terms

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Huntington International Services Financial
Institutions
Export Payment Terms

• Cash in Advance
• Documentary / Commercial Letter of Credit
• Standby Letter of Credit
• Credit Insurance
• Documentary Collection
• Open Account

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Huntington International Services Financial
Institutions
Cash in Advance

• Considerations
• Some countries will not allow free flow of
  capital
• Competitive disadvantage in many cases

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Huntington International Services Financial
Institutions
Documentary / Commercial Letter of Credit

• Considerations
• May get confirmation by known bank
• Sight or usance (time draft or deferred payment)
• Costly for both sides of transaction
• Discrepancies (air freight problematic)
• Letter of instructions to reduce amendments

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Huntington International Services Financial
Institutions
Standby Letter of Credit

• Considerations
• Confirmation may be available
• Open account or collection
• Conditions for drawing, expiration
• Costly for importer

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Huntington International Services Financial
Institutions
Credit Insurance

• Considerations
• Claims process certainty?
• Due diligence named insured
• Deductible
• Cost varies

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Huntington International Services Financial
Institutions
Documentary Collections

• Considerations
• Documents against payment (D/P, Sight Drafts,
  CAD)
• Documents against acceptance (D/A)
• Distressed merchandise overseas
• Low Cost
• Direct collections OFAC

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Huntington International Services Financial
Institutions
Open account

• Considerations
• Importance of ongoing business / maintenance
• Foreign debtor/creditor law - bankruptcy
• Foreign legal system functionality

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Huntington International Services Financial
Institutions
Other issues

• Foreign currency terms hedging requires credit
• International credit policy linked to sovereign
  ratings
• Incoterms and freight forwarders
• Any questions?

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Huntington International Services Financial
Institutions
Contacts

• FX Sales Trading fx.trading_at_huntington.com
• International Trade international_at_huntington.com
• Toll Free 800-824-5653
• Rory Kemp 614-480-5487
• Melissa (Missy) Kidder 614-480-5488
• Brian McCarthy 614-480-5506
• Tony Talbot 614-480-5490
• Tony Huckeby, Manager 614-480-5601