Going Global
Are you ready to take your business abroad? Here are a few things you’ll need to know to get started.
When you’re ready to do business internationally, there are many things to consider. Fortunately, you don’t have to go it alone. At Union Bank of California, we provide free consultative services to help you and your business succeed. We asked our Retail Banking and Global Trade Sales Manager, Gamal DeSouki, for a few pointers on where small businesses should start.
Q: I’m ready to do business internationally, how can I get started?
“The best place to start is to talk to your Union Bank banker,” DeSouki says. “He or she will get an idea of your goals and refer you to a Union Bank Global Trade advisor for a complimentary consultation.” During this meeting, your advisor will help you maximize your potential in international markets while minimizing risk. “We help to reduce your costs and increase efficiency by providing multiple products that we can offer to our clients based upon their needs,” he says.
“A Standby Letter of Credit can serve as our customer’s guarantee,” DeSouki says. “But we don’t expect them to know how to get all the pieces together on their own, so we guide them through the process of initiating a Standby Letter of Credit and will support them along the way.”
Q: How can I assure international vendors they’ll be paid for merchandise I purchase?
When you’re importing merchandise, an Import Letter of Credit offers your vendors a high level of payment assurance, with a financial commitment from Union Bank to pay for that merchandise on your behalf. It enables you to leverage Union Bank’s creditworthiness to demonstrate financial stability and negotiate better prices and terms, reduce payment risk and structure payment, financing and processing solutions that fit your needs.
Q: I am exporting merchandise to an unknown buyer. How can I ensure I’ll be paid?
If you are the seller, an Export Letter of Credit provides a high level of assurance that you will be paid for goods and services provided to the buyer. It represents a financial commitment on behalf of the buyer’s bank and offers increased security because the issuing bank’s creditworthiness is substituted for the buyer’s, and allows for fewer payment risks with confirmations from Union Bank.
Q: I already have established relationships with international suppliers and buyers; how can I simplify my transactions?
With Documentary Collections, you can save time and money by eliminating Letter of Credit paperwork and reviews, expedite transaction processing and reduce your credit constraints. But DeSouki reiterates that it’s always a good idea to talk to your advisor, “who can expertly help you to determine the most secure way to do the deal,” he says.
Q: What can be done to provide a guarantee of non-performance?
Standby Letters of Credit enable a bank to represent to a beneficiary that it is willing to make payments on the customer’s (applicant’s) behalf. The letter can provide monetary support for obligations such as trade payments, leases and advance payment requirements, back obligations such as performance and bid assurances. It also can help you support insurance obligations.
Help facilitate your international trade with our global trade services. Call your Small Business Banking or a Global Trade consultant at 1-800-696-6082.
Also In This Issue
- Benefits Offer Flexibility
- Robust benefits programs can increase employee loyalty and reduce turnover.
- Keeping Employees Up When the Economy is Down
- Here are some tips to help you motivate your staff when times are tough.
- Keeping Overhead Under Control
- The costs of running a small business can seem daunting, but there are ways to save on overhead expenses without compromising your company’s bottom line.
Did you know?
Union Bank provides complimentary, step-by-step advisory services to help grow your business internationally.