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Basic Guide, Financing Export Transactions

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CHAPTER 14: FINANCING EXPORT TRANSACTIONS

Exporters naturally want to get paid as quickly as possible, and importers usually prefer delaying payment at least until they have received and resold the goods. Because of the intense competition for export markets, being able to offer good payment terms is often necessary to make a sale. Exporters should be aware of the many financing options open to them so that they may choose the one that is most favorable for both the buyer and the seller.

An exporter may need (1) preshipment financing to produce or purchase the product or to provide a service or (2) postshipment financing of the resulting account or accounts receivable, ...

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