When starting a relationship with an overseas partner, what securities measures should a business owner here take?
When you conduct business for the first time with an overseas partner, there is naturally mistrust between both parties. How do you know you’ll get paid? What if the goods are never shipped? International collection services go beyond wire transfers and exchanging currency, whereby the bank actually serves as a collection agency of sorts. With collections services, the bank manages the payment process. Documents such as the invoice, packing list, document of title and customs information are sent directly to the bank. The financial institution then presents these documents to you for payment, and then wires your money overseas. This prevents you from having to work through a new international customer’s payables and receivables system. Both parties can rest assured that a trusted mediator is facilitating the payment transactions. What if a business owner wants more security with overseas transactions? International letters of credit are similar to collections services, but the bank act
