INHOLLAND – Small Business June 29, 2006 International Banking with Rabobank.

INHOLLAND – Small BusinessJune 29, 2006

International Bankingwith Rabobank

INHOLLAND - International Banking

Introduction

Martin van der Werff

Consultant Financial Logistics

Rabobank Nederland Corporate Clients– Regional Team Amsterdam


What’s Up ?

International Business- The concerns, needs, risks

Trade risks- Which risks & how to mitigate them

Payment Conditions– The why’s & how’s

Delivery Conditions– The why’s & how’s


International Entrepreneurs require …

… Knowledge and Hedging Possibilities of international business/company risks

… Reliably and quickly initiate and receive (inter)national transfers

… An easy-to-use Electronic Banking (EB) system

… Transparent and competative cost structure

… Central access and overview of local foreign accounts

… a Sparring Partner to investigate, ‘sound-check’ and realise business ambitions

INHOLLAND - International BankingInternational Trade Risks


Which Risks AND for Whom ?

Risks Exporter Importer

Contract risk

Transport risk

Debtor risk

Political risk

Currency risk

Non-Delivery risk

Quality risk

Product Liability risk

Non-Take up risk


Different situations

require

Different ‘tools’

International (Trade) Risk Management


Hedging Debtor Risk

CompanyCompany

Trade Finance(factoring)


Customerinformation

Customerinformation

CreditInsurance

CreditInsurance

DocumentaryCollection

DocumentaryCollection

DocumentaryCredit

DocumentaryCredit

ForfaitingB/Ex

ForfaitingB/Ex

BankGuarantee

BankGuarantee



CollectionBad debts

CollectionBad debts

CreditInsurance

CreditInsurance

Precautionary Curative


International Payment Conditions

Open account– Cheque

Documentary Collection

Documentary Credit (L/C)

Advance Payment

Exporter

Importer

High Risk

Low Risk


Cross Border TT payments via SWIFT

Euro

Rabobank

WGZ Bank

Dresdner Bank

Wells Fargo

Bank of New York

US Dollar

Rabobank

Dresdner Bank

MT103 MT202

MT950

MT103 MT202

MT202

MT950


International Payment ConditionsSelection proces and determinant factors

Branch customs Country-specific ‘habits’ Governmental requirements

– Trade Restrictions– Foreign Currency Restrictions

Buyers credit: yes/no ? Risk appetite / acceptation Competition Delivery condition (as per I.C.C. Incoterms 2000) Type of Goods And many more …


Letter of Credit (L/C)

ExporterExporter

Seller’s BankSeller’s Bank

ImporterImporter

Buyer’s BankBuyer’s Bank

1

5

2 10

3

8

9

7 46


Delivery Terms (ICC Incoterms 2000)

Group 'E' DepartureEXW

Group 'F' Main Transport - unpaidFCA, FAS, FOB

Group 'C' Main Transport – pre-paidCFR, CIF, CPT, CIP

Group'D' ArrivalDAF, DES, DEQ, DDP, DDU

Mode of Transport


Make Sure That You :

DETERMINE concrete payment and delivery conditions

Are Unambiguous, Explicit and Clear

Negotiate

Consider interacting with your banker


Evolution of International Banking


Rabobank International Advisorwww.zibb.nl/ria

Tailor-made advice Various risk catagories and

hedging instruments Explanation of Delivery and

Payments conditions Glossary on commonly

used trade terms in international business

Country specific information on 72 countries

Customary specimen texts of L/C and/or bank guarantee

Forms and documents for initiation of L/C’s, Collections

Specimen trade documents

Questions ?

Thank You !

For further information please turn to:

Ms. R.P. (Rowena) Bosscher, Rabobank Zuid-KennemerlandTel: +31 23 512 05 12

INHOLLAND – Small Business June 29, 2006 International Banking with Rabobank.

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Transcript of INHOLLAND – Small Business June 29, 2006 International Banking with Rabobank.