Today, 85% of global trade is conducted on “open account”.
USITS advises forward-thinking financial institutions about providing services crucial to the success of their export clients who engage in global trading on open account. USITS helps both the bank and the exporter reduce and manage the risk of international business.
From working capital guaranties for SMEs to structured project financing for multinational corporations, USITS works with Export Credit Agencies (ECAs), multilateral development agencies, and the commercial banks of the world to structure the appropriate form of financing. This process transcends national borders and our methods are not limited by the traditional methods of trade finance.
USITS opens electronic gateways to various markets through e-commerce sites by combining the sourcing of U.S. made goods with practical methods of payment. Trade finance is complex and innovation must be attended by rigorous security measures, from the product ordering to the payment or trade settlement phase.
We assist our clients by innovating the manner of marketing and selling goods and the ways that trades are settled to keep them ahead of the changing world.
Practice definition and constraints
Our practice is defined by the procedures of the United Nations and of the International Chamber of Commerce (ICC). These two bodies provide the foundation upon which all international trade regulations and laws are built.
The UN Convention on Contracts of International Sale of Goods and Incoterms® 2010, in conjunction with the common law of international trade, forms the basis of the techniques we use to facilitate foreign trade transactions. We specifically look to the ICC’s Uniform Customs and Practices UCP-600 for Letters of Credit, the ISP 98 (ICC Publication 590) for Standby Letters of Credit, and the URC 522 (Uniform Rules for Collections) which provide standards and procedures throughout the world of international trade and finance.
USITS assists its clients to manage the intricacies and vagaries of insurable interests in commodities and contracts to facilitate cargo insurance and title exchanges. USITS arranges equitable and secure transactions with assurance that both buyer and seller are informed of their rights and responsibilities. USITS manages compliance with all the legal requirements of all the jurisdictions involved in the transaction including: the payment of duties and taxes, import agreements, bills of ladling, and meeting export requirements.
USITS promotes and facilitates export of capital goods through a unique understanding of working capital guaranties, and export financing programs in the context of pre-export, short-term, medium-term and long-term. USITS experience permits its clients to borrow in multiple currencies in various financial markets and take advantage of competitive interest rates among different financial institutions by utilizing the most advantageous currency and seeking out profitable arbitrage opportunities.
USITS is not limited by traditional trade finance approaches when arranging methods of payment and establishing title to goods. Rather than depending on the limited Incoterms of a transaction, USITS actively employs private and government-provided insurance, forfaiting, capital guarantees, medium and long-term guaranties and long term direct financing to drive exports. USITS finds the solutions to finance the cash conversion cycles and span the financial gap in the exportation contracts with short-term (30 days or less), medium-term (1-5 years), and long term (5-12 years or more) arrangements.
USITS: A center for international trade finance education
USITS offers trade finance courses and seminars to assist buyers, sellers, governments and non-government organization (NGOs) master the financial methods necessary to conduct and finance successful international trade transactions.
Some immediate considerations
Small and medium size enterprises (SMEs) do not participate to the extent they could in international projects because of the requirement that a foreign buyer is required to make a 15% down payment or an amount equivalent to the non-U.S. content of export projects. USITS makes these down-payments attractive to the foreign buyer.
The result is a dynamic resurgence of economic development, manufacturing and employment.