INHOLLAND – Small Business June 29, 2006 International Banking with Rabobank
Dec 21, 2015
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
INHOLLAND - International Banking
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
INHOLLAND - International Banking
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 Banking
INHOLLAND - International BankingInternational Trade Risks
INHOLLAND - International Banking
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
INHOLLAND - International Banking
Different situations
require
Different ‘tools’
International (Trade) Risk Management
INHOLLAND - International Banking
Hedging Debtor Risk
CompanyCompany
Trade Finance(factoring)
Trade Finance(factoring)
Customerinformation
Customerinformation
CreditInsurance
CreditInsurance
DocumentaryCollection
DocumentaryCollection
DocumentaryCredit
DocumentaryCredit
ForfaitingB/Ex
ForfaitingB/Ex
BankGuarantee
BankGuarantee
Trade Finance(factoring)
Trade Finance(factoring)
CollectionBad debts
CollectionBad debts
CreditInsurance
CreditInsurance
Precautionary Curative
INHOLLAND - International Banking
International Payment Conditions
Open account– Cheque
Documentary Collection
Documentary Credit (L/C)
Advance Payment
Exporter
Importer
High Risk
Low Risk
INHOLLAND - International Banking
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
INHOLLAND - International Banking
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 …
INHOLLAND - International Banking
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
INHOLLAND - International Banking
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
INHOLLAND - International Banking
Make Sure That You :
DETERMINE concrete payment and delivery conditions
Are Unambiguous, Explicit and Clear
Negotiate
Consider interacting with your banker
INHOLLAND - International Banking
Evolution of International Banking
INHOLLAND - 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
INHOLLAND - International Banking
Questions ?
Thank You !
For further information please turn to:
Ms. R.P. (Rowena) Bosscher, Rabobank Zuid-KennemerlandTel: +31 23 512 05 12