HOW INTERNATIONAL FINANCE DIFFERS FROM DOMESTIC FINANCE


While Domestic Finance is usually arranged between two parties only, the lender and the borrower,
International Finance involves a minimum of four entities:

• The U.S. importer or exporter who acquires or provides specific goods.
• His / her bank who issues or negotiates the payment instrument: wire transfer or documentary letter of credit.
• The foreign buyer or seller who provides or acquires the goods.
• His / her bank who negotiates or issues the payment instrument.

Quite often other participants are added to the above quartet:

• The manufacturer of the goods (a U.S. company for exports, a foreign one for imports).
• The final purchaser of the goods (usually a large U.S. or foreign company).
• The Export-Import Bank of the United States "Ex-Im Bank" (for a U.S. export) or a foreign export credit agency (for a U.S. import).
• A bank or a commercial lender with skills and appetite for export or import finance.

Because International Finance is transactional (while Domestic Finance is balance sheet driven) the cooperation of all the actors above is a must for success. MEYRAT FINANCIAL SERVICES is the ideal conductor for International Finance Orchestras.