There is a new kid on the block. In fact there are so many new kids on the block they’re savagely fighting each other for your business.
Remember the good old days when if you wanted to export your product overseas, your customer had to provide you with a bank Letter of Credit so you could be sure of getting paid? They were part of the same good old days when you had to provide a bank Letter of Credit to a foreign supplier before they would even begin manufacturing your order never mind ship to you. Letters of Credit are expensive and that’s if you (or your customer) could even qualify for them. Then, even if you got one, they TIED UP YOUR CREDIT, limiting credit available for other production or sales.
Well, that is now a thing of the past thanks to the new kids; providers of credit insurance. The market has become so competitive that overseas shipments both in and out of the US are now relatively easy and cheap to transact. To find out more, contact the players directly with your transactional needs. The major players are:
Coface North American
Eumer Hermes ACI
QBE Trade Credit
Bizar Financing members can go to the Research Center page on this website and scroll down to the heading “Credit Insurers” where you will find links to each company’s website.
If you are a savvy buyer you can create a bidding war for your business or you can use a broker (like Santa Monica, California-based Meridian Finance Group) to do it for you.
If you are looking to enter the export market for your product, this is a great time to jump in and take advantage of the shootout. It will only be a matter of time before the market will tighten, as all markets eventually do. The exporters who have built relationships with these big kids will be their favored playmates while the Johnny Comelatelys wait in line.