Trade Finance Solutions
There are many options for how to make trade payments when working with suppliers, vendors or buyers in other countries. Partner with The Commerce Bank of Washington for expert guidance through all stages of your international payment process.
Letters of Credit (LOC)
In international trade, it is common practice for suppliers or buyers to ask for a LOC so both parties receive protection.
Import Letters of Credit
Essential for any business that purchases goods from overseas, an Import LOC assures your seller will be paid only after they fulfill all their documentary obligations. more
- This gives comfort to your supplier to ship your goods; knowing they will be paid if they comply with the terms and conditions of the LOC.
- By offering to pay for imported goods using a LOC, you can often negotiate extended terms or delay payment until after goods are received.
- With our Web-based issuance and tracking system, you can apply for Letters of Credit online and can benefit from same-day issuance.
Export Letters of Credit
When selling goods to overseas customers, you may receive an Export LOC issued by the buyer’s bank. We will assist you in complying with the LOC terms so you will be paid in full within the agreed time limit.
Standby Letters of Credit
The Standby Letter of Credit is a way for you to assure payment to a third party through the bank’s obligation to release funds should you be unable to meet the terms of the LOC. It can be used for many purposes including a bid bond, performance bond, support for a loan or unpaid invoices made on an open account purchase.
Transferable Letters of Credit
The beneficiary of an export LOC may transfer their rights and obligations to a second beneficiary, in full or in part. The Transferee is normally a supplier who will provide goods once the LOC is transferred. This allows brokers and “middle-men” to complete a transaction using their buyer’s LOC.
Assignment of Proceeds
A beneficiary of an export LOC may assign “authority to pay” to a third-party supplier.
An International Documentary Collection is a popular method of payment in which banks are employed as agents in the payment of documents between buyers and sellers.