Trade Services & Finance

Trade Services & Finance

For your Import or Export operations, whether your company is purchasing from local suppliers or overseas vendors, or selling to international buyers or within the USA, Mercantil Bank N.A., makes it easy to manage your domestic, as well as your international trade transactions. We offer a wide array of services that will expedite payments, decrease paperwork, reduce risks and simplify your transactions.

Our Trade Services products include:

  • Clean and Documentary Collections.
  • Issuance, Advise and Confirmation of Commercial Letters of Credit (sight, time or deferred payment) and Standby Letters of Credit.
  • Discount of Banker’s Acceptances, International Trade Acceptances with Bank Endorsements (‘aval’) & Corporate Bills of Exchange (subject to credit approval).
  • Bank to Bank Reimbursements (including Reimbursements Undertakings).
  • Factoring (with or without recourse).
  • Forfeiting.
  • Short-term import/export financing.
  • Transactions under GSM-102 Program (Commodity Credit Corporation).
  • ExiImBank guarantee transactions.

CLEAN AND DOCUMENTARY COLLECTIONS

Through Mercantil Bank N.A. correspondent banking network we can handle your export or import collections safely, and provide your company with direct access to almost any primary financial institution worldwide. We can efficiently process both incoming and outgoing collections. Title documents are withheld until payment or an acceptance from the buyer is received. Subject of approval, we may also finance the collection. This is a fast, convenient and relatively inexpensive way to do your trade business.

LETTERS OF CREDIT

Whether you are importing or exporting, Letters of credit offer the best payment and documentary protection. Mercantil Bank, N.A. will ensure that negotiation of documents take effect only against seller’s strict compliance of the credit terms and conditions. In addition, Mercantil Bank, N.A. offers Trade Services Online, an electronic Letter of Credit application that enables you to initiate an import Letter of Credit from your desktop and monitor in real time your Letter of Credit activity.

STANDBY LETTERS OF CREDIT

Through the issuance of a Standby Letter of Credit, Mercantil Bank, N.A. can provide assurance (guarantee) of payment to a foreign supplier for trade related contractual obligations undertaken by our customers. Since the beneficiary is relying on Mercantil Bank’s credit worthiness, you can negotiate better prices on your purchases. Standby Letters of Credit are an excellent way for securing payment to foreign suppliers while allowing flexibility for various purchasing arrangements such as;

  • Covering performance or non-performance
  • Single or repetitive commercial transactions
  • Contract bidding

DISCOUNTING OF BANKER’S ACCEPTANCES

Through the discounting of Bankers’ acceptances Mercantil Bank, N.A., provides short-term financing on attractive terms for international trade transactions. We can discount Trade Acceptances from qualified financial institutions acceptable to the Bank. When discounting acceptances from letters of credit issued or confirmed by Mercantil Bank, N.A., your supplier can get paid earlier while you still benefit from the financing terms.

DISCOUNTING OF TRADE ACCEPTANCES WITH BANK AVAL

If you are an exporter and prefer not to carry credit risk on importers, or would like the benefit of early payments for shipments, you can discount Bills of Exchange (drafts) drawn on the foreign buyers with the aval of any of our correspondent banks. This type of financing will provide your company with liquidity (with or without recourse) and will also absorb the county risk. If done without recourse to the exporter.

EXPORT ASSISTANCE PROGRAMS

Mercantil Bank, N.A., works with ExImbank in assisting US exporters and overseas importers of US products with their financial needs. Financing is available through loans with political or commercial risk coverage granted by ExImbank medium term insurance, thus enabling your company to buy-sell from raw materials to capital goods, while obtaining longer financing terms. Mercantil Commercebank, N.A., is also duly approved to participate as a USA bank in the various export guarantee programs provided by the Commodity Credit Corporation (CCC), such as GSM-102.