Tuesday, July 05, 2005

Global Trade, Zero Angst

In Inc. magazine

International trade without the stress.

As business becomes increasingly global, many small companies are navigating the perilous waters of importing goods. For a small business that buys products from foreign suppliers, especially those in Asia, making payments can be tricky. Asian manufacturers typically require either payment in advance or a letter of credit from a bank. Neither option is great for cash flow. To obtain a letter of credit, importers put up cash as collateral or take out a line of credit so that their bank will guarantee payment. Bank fees for letters of credit usually run from several hundred to several thousand dollars, and the interest on credit lines can run even higher.

How do you manage the collection process on an overseas transaction without losing your shirt and pulling out your hair?

[Up tomorrow: Country Correspondent Report from Jayanthi Iyengar in India. Watch for it.]

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