Talk with us:
The following products help you react quickly to foreign market opportunities for your business:
Import Letters of Credit Our Letters of Credit provide certainty of payment to your foreign supplier. Letters of Credit can be denominated in U.S. dollars or a foreign currency. We can structure your credit lines to allow for the issuance of sight, usance or deferred payment letters of credit, depending on the terms negotiated with your vendor. You can conveniently initiate and track your Letters of Credit online.
Bankers' Acceptance Financing of Imports
We offer Bankers' Acceptances in a wide range of maturities to match your sales cycles. You can request City National Bank to issue a term Letter of Credit (i.e., payable 30-180 days after sight), and postpone the debit to your account until maturity. We can still pay the exporter at sight, since the transaction can be financed at a rate (the discount rate) less than a traditional credit facility. Why? Banks are not required to provide reserves for financing such transactions, and since acceptances are extremely liquid, the bank readily has access to a lower-cost source of funds.
Incoming Documentary Collections
Our proven capability in documentary collections ensures that you and your supplier have control over the shipping and financial documents. This means you get efficient, predictable payment. Import collections are most secure when both buyer and seller have developed a comfortable level of mutual trust and understanding. The importer will be required to either pay (D/P) or accept (D/A) the draft in order to take possession of the goods, thereby avoiding tie-up of valuable credit lines.
Foreign Drafts for Payments Overseas
City National Bank foreign drafts are drawn on major banks in the country of the currency and cleared through local channels. We provide more than 25 currencies, with no minimum amount required. We can arrange delivery via regular mail, same-day delivery or overseas courier. When you pay in local currency via draft you avoid the risk of short-changing or overpaying your foreign vendors/suppliers with a U.S. dollar payment whose value has changed from point of initiation to point of conversion.
Foreign Currency Wire
Save time and money by wiring foreign currency to your overseas vendors/suppliers. The foreign currency is delivered electronically to their bank in their local currency in one-to-two business days.
Payment Guarantee for Trade Transactions
Standby Letters of Credit act as a payment guarantee for your trade transactions. Our Standby Letters of Credit cover the risk of your nonperformance, and help you establish an "open account" relationship with a new supplier. When you are bidding on a contract, Standby Letters of Credit can also act as bid bonds, performance guarantees and warrantee bonds. They also are commonly used by importers who must comply with an exporter-required "advance payment" clause.
Online Letters of Credit
Our PC-based Letter of Credit tracking and application system has a password-secure environment with electronic templates that do the work for you. Our easy menu-driven interface gives you immediate productivity. Our Online Letters of Credit service handles all aspects of Letter of Credit issuance, both import and standby. The service tracks all functions, creates new applications and amendments, and approves and sends output directly to the bank.