Trade Finance for Importers

If you rely on imported goods to sell to your US or Canada-based customers, Amerisource can help you enhance your relationship and terms with your overseas suppliers.

Your foreign supplier may ask for pre-payment before goods are shipped (commonly referred to as cash-in-advance, or "CIA").  Your supplier might also ask for payment through a secure instrument such as a Letter of Credit ("L/C").

Amerisource's import trade finance enables a company to purchase goods from a foreign supplier when the supplier will not extend open account payment terms to the importer.  In essence, this allows an Amerisource client to obtain "inventory financing".

Key Trade Finance services available for existing financing clients include:

• Irrevocable Letters of Credit
  Amerisource issues an L/C guaranteeing payment to a vendor for a specific shipment once vendor has met all of its obligations to you under the contract or purchase order.  While most bank-issued L/Cs require the L/Cs to be cash-secured, Amerisource allows for the accrual of security over time.  This allows you to avoid paying your vendor CIA terms, maximizing your working capital and minimizing your transaction risk.  Amerisource L/Cs are accepted worldwide.
• Standby Letters of Credit
  Amerisource issues an L/C which remains "open" (on standby) for a pre-specified period of time.  This is designed to help you obtain open payment terms with your overseas supplier.  Standby L/Cs are typically bound to a sub-limit under your existing credit line with Amerisource.
• Standby Vendor Guaranty
  Amerisource issues a guaranty for payment to your supplier, designed to enhance your existing credit relationship.  Standby Vendor Guarantees are typically bound to a sub-limit under your existing credit line with Amerisource.
• Letter of Direction
  Typically used by clients engaged in drop-shipment of product from overseas supplier directly to end-user customer.  This cost-effective form of trade finance allow you to, in essence, obtain inventory finance from your supplier, with Amerisource paying the supplier in full once the order has been fulfilled.

Talk to an Amerisource representative today about your trade finance needs — we'll help put together a customized solution for you.