Q: Why consider international trade?

A: Foreign trading can increase your profitability in a number of ways. If you are an exporter, it allows you to enter new markets and increase your sales. If you are an importer, foreign markets can be a source of new suppliers and materials for you, in many cases, at greatly reduced costs.

Q: I have never dealt internationally. Where do I begin?

A: Contact our Trade Finance Group for introductions to international services providers.

Q: I always sell for cash in advance. Why should I change?

A: You can increase the market for your goods by offering financing alternatives. For more information, contact our Trade Finance Group.

Q: How do I get paid?

A: You can use various methods of payment [cash-in-advance, letter of credit, documentary collection and open account] taking into consideration the nature of the transaction, amount of the sale and your appetite for risk. For information, contact our Trade Finance Group.

Q: How much do Letters of Credit cost?

A: Because every transaction is unique in regard to size, terms, and complexities, there is no standard price model for L/Cs. For information, contact our Trade Finance Group.

Q: My bank will not finance foreign receivables. What can I do?

A: Using credit insurance, the Whitney is able to advance against these accounts. For more information, contact our Trade Finance Group.

Q: Getting credit checks . . . should I bother?

A: In recent years, credit services have become more accessible and affordable for companies that want some assurance on the financial stability of their trading partners. Doing a little research on the company before you finalize the contract is always a good idea. For information, contact our Trade Finance Group.

Q: Can I require payment in U.S. dollars in order to avoid foreign exchange risk?

A: You may require payment in U.S. dollars, but it is important to recognize that in doing so, you are passing that foreign exchange risk on to your trading partner. In competitive markets, forcing your buyer to assume additional risk may make your products less attractive. To prevent this, you might want to look at other options such as forward contracts and currency options designed to hedge your exposure to exchange risk, making it possible to offer more attractive terms to your buyer. For more information, contact our Foreign Exchange Group.