Trade Services Products
Import Letters of Credit
Let our Letters of Credit, whether denominated in U.S. dollars or a foreign currency, provide certainty of payment to your foreign supplier. Your credit lines can be structured to allow for the issuance of sight, usance or deferred payment letters of credit, depending on the terms negotiated with your vendor. And now City National offers you the convenience of initiating and tracking your Letters of Credit online.
Bankers' Acceptance Financing of Imports
We also 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), thus postponing the debit to your account until maturity. We can still pay the exporter at sight, however, 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 you and your supplier control over the shipping and financial documents that will result in more 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 Currency Wire
Save time, save money. Move your funds electronically by wiring foreign currency to your overseas vendors/suppliers. The foreign currency is delivered to their bank in their local currency in one-to-two business days.
Payment Guarantee for Trade Transactions
Let our Standby Letters of Credit act as a payment guarantee for your trade transactions. Here the Standby Letters of Credit cover the risk of your nonperformance, thus helping you establish an "open account" relationship with a new supplier. Standby Letters of Credit can also act as bid bonds, performance guarantees and warrantee bonds when you are bidding on a contract. They also are commonly used by importers who must comply with an exporter-required "advance payment" clause.
International Banking Online
Intuitive and simple to use, our integrated online platform supports the international banking needs of business and personal clients. A Foreign Exchange (FX) module streamlines international payments, and supports Foreign Currency Deposit Accounts and other foreign exchange needs. A Trade Services module provides support for trade transactions including Letters of Credit, Documentary Collections, and financing requests. The two modules are available individually or together for a complete online international banking solution. Learn more »
Incoming Foreign Currency Wire
Don't wait for the "check in the mail!" Reduce the time and cost of receiving payment, and guarantee that you have received good funds in your account. City National Bank will convert your foreign currency using our current rates and credit your CNB account directly.
Export Letter of Credit
One of the highest degrees of payment protection. Eliminate the credit risk of your foreign customer by substituting that of their foreign banker. By having City National Bank confirm the Export Letter of Credit, we can also take your risk if you are not being paid on the letter of credit as a result of foreign bank default and country risk.
Collection of Foreign Check Payments
Let us expedite the collection of your funds on overseas drafts and checks to assure you receive quick, accurate credit. We can also provide you with immediate credit to your account at the current exchange rate for items denominated in foreign currencies.
Outgoing Documentary Collections
If you are exporting abroad, you need assurance of payment. Given that it is often difficult to procure cash in advance for your larger shipments, an export documentary collection may be the answer. An export documentary collection offers an economical avenue to maintain control of your goods until payment is made. Moreover, with export collections, the risk of losing title to goods is mitigated. Although there is no bank obligation or undertaking to pay, title documents are released by the bank only upon the buyer's payment (D/P) or acceptance (D/A) of the draft.
Transferable Letters of Credit
A terrific financing tool for small company exporters with limited borrowing capability of their own, or for companies with large single-sale transactions. This mechanism essentially transfers the payment in the letter of credit to a third party - your supplier. In so doing, it enables you to use the first buyer's credit and buy the goods without using your credit line. It is important to note that the wording in the letter of credit itself must expressly state or be designated as transferable.
Assignments of Export Letter of Credit Proceeds
When your vendor asks for more assurance of payment for supplies or materials that are used in your export shipment, offer an assignment of proceeds from your Letter of Credit. Immediately upon our receipt of payment from your Letter of Credit, we will directly pay your vendor the portion you assigned.
Bankers' Acceptance Financing of Exports
Let City National help you take control of your business cash outflow with a negotiable instrument that is drawn on, and accepted by, a bank to finance a trade-related or domestic commercial transaction. Bankers' Acceptance financing of exports is versatile and beneficial to both exporters and importers alike. Under an issuance Letter of Credit (i.e., 30-180 days after shipment), the exporter does not necessarily have to wait until maturity for payment. The exporter can request that City National discount or cash out the Letter of Credit at the time of negotiation (at sight). The benefit is improved cash flow, while still granting the buyer's terms.
Foreign Bank Standby Letters of Credit
Your customer wants to have an "open account" relationship, but you're not comfortable with the risk. Consider accepting a Standby Letter of Credit from your customer's overseas banker. A foreign bank Standby Letter of Credit can guarantee payment to you if your customer defaults on his or her "open account" terms.
Foreign Credit Information
Accessing up-to-date information, and the ability to act upon it, is a key resource in making sound financial decisions. Yet it is often difficult to secure accurate and detailed credit information when conducting business abroad. We can provide access to the in-depth foreign credit information you need to trade confidently and securely through our arrangements with international credit reporting agencies.
Government-Guaranteed Export Lending and Insurance Programs
Eximbank, an agency of the U.S. Government, was established in 1934. The bank's mandate is to support the export sector of U.S. goods and services. The Eximbank Working Capital Guarantee program has been established to help banks and finance companies extend credit to U.S. exporters in need of pre-export credit support. By actively providing a conduit of working capital accessibility for export purposes, the Eximbank of the United States fulfills its mandate to increase and sustain jobs by supporting the export sales of U.S. goods and services. City National Bank expedites the processing of Eximbank 90% guaranteed loans up to $5 million through its Delegated Authority (D/A) status.
Export Working Capital Loans
If you are a U.S. exporter in need of a working capital loan to finance labor, material, assembly, or to buy product for export, our Trade Finance specialists would be pleased to develop a specific Eximbank financing package. In so doing, you will benefit by enhancing cash flow, funding marketing activities, and possibly improving financing costs.
Accounts Receivable Insurance
By employing the Eximbank short-term Export Credit Insurance program, you develop and expand your export sales by protecting against loss in case of a foreign buyer default. With insured receivables you can increase cash flow by borrowing against your foreign receivables, secured by the full faith and credit of the U.S. Government. Indeed, up to a 90% advance is available for export-related accounts receivable. With insurance receivables, you can enhance foreign sales opportunities by arranging more attractive financing and offering more favorable credit terms to your customers.
Medium-term Loans to Foreign Buyers
Eximbank issues guarantees and/or insurance to commercial lenders, providing repayment protection for loans to creditworthy foreign buyers of U.S. exports. City National Bank can extend medium-term credit to the foreign buyer, thereby giving you the competitive edge, particularly in countries where local interest rates are high.
Support for Finance and Contract Performance
Standby Letters of Credit
A Standby Letter of Credit serves to assure the performance of a contractual obligation. They are often used instead of cash deposits, or as performance or bid bonds in both domestic and international transactions. Should the exporter fail to ship, the buyer may recover the advance payment by drawing upon the standby credit issued in his or her favor.
An additional, common need for a standby credit is the buyer's concern regarding the quality/specifications compliance of the product and/or a shipping schedule compliance. Here the Standby Letter of Credit covers the seller's nonperformance. Let our Standby Letters of Credit act as a payment guarantee for trade transactions to help you establish an "open account" relationship with a new supplier. Standby Letters of Credit can also act as bid bonds, performance guarantees and warrantee bonds when you are bidding on a contract, or they can provide financial reimbursement in the event of default. When you are receiving money up front for start-up costs or materials, a Standby Letter of Credit may be required as an advance payments bond to assure that the payment can be recovered in case you default on the contract.
If you wish to offer "open account" terms to your foreign clients, consider obtaining a foreign bank Standby Letter of Credit from their banker to mitigate your risk.