International Credit and Collections: A Guide to Extending Credit Worldwide

International Credit and Collections......Page 1
Contents......Page 14
PART ONE INTERNATIONAL CREDIT......Page 24
Getting Started......Page 26
Enforcing the Policy......Page 27
Customer Risk......Page 28
Revamp Existing International Credit Policy......Page 29
What To Do When There Is No Policy......Page 30
International Credit Policy Tips......Page 31
Ongoing Monitoring......Page 34
International Credit Reports......Page 36
Other Sources of Credit Information......Page 37
Quality of Information......Page 38
Court Records and Public Filings......Page 39
Other Factors Affecting the Credit Process......Page 40
Collection Experience and Conditions......Page 41
Developing One’s Own Application......Page 42
Getting Started......Page 44
Credit Applications for Existing Customers......Page 45
Political Risk......Page 46
Legal Issues......Page 48
Foreign Exchange......Page 49
Use of Derivatives......Page 50
Economic Factors......Page 51
Trade Issues......Page 52
International Credit Information Services......Page 53
Information Available on the Internet......Page 54
Sample Corporate Do-It-Yourself Country Report......Page 55
PART TWO COLLECTIONS......Page 58
Starting Point......Page 60
Simple Solutions......Page 61
How To Minimize Common Collection Delays......Page 62
Quick Hit Strategies To Speed Up Collections......Page 64
Turning an Account Over for Collection......Page 67
Selecting International Collection Agencies......Page 68
How It Works......Page 70
Finding the Right Factor......Page 71
Caveat......Page 74
Limiting Factors to a Course of Action......Page 75
Why Protesting Is Inadvisable......Page 76
Preparing To Protest......Page 77
Country-by-Country Tips......Page 78
8 International Collection Case Studies......Page 80
Look before You Leap......Page 81
Basic Prevention Techniques......Page 82
Personal Debt and Personal Guarantee......Page 83
Never Give Up Originals......Page 85
Salespeople Are Not Collectors......Page 86
Go to the Source......Page 87
PART THREE CULTURAL AWARENESS......Page 90
9 Cultural Awareness......Page 92
Business Relationships......Page 93
Preparation for International Travel and Customer Visits......Page 94
Location......Page 96
After the First Meeting......Page 97
Moving Forward with the Customer Relationship......Page 98
10 Cultural Differences: Latin America......Page 100
How Important Is Time?......Page 101
When Can You Expect To Be Paid?......Page 102
Get To Know Each Other, Then Do Business......Page 104
Other Cultural Differences......Page 105
Implications for Business......Page 106
Pacific Rim Area......Page 108
Stop, Look, and Listen......Page 109
Using an Interpreter......Page 111
Negotiating in the Pacific Rim......Page 112
Conclusion......Page 114
Publications......Page 116
Collections and Technology......Page 117
Currency Issues......Page 118
PART FOUR DEALING WITH PEOPLE......Page 120
Cultural Differences......Page 122
Level of Sales and Other Criteria......Page 123
Confirming an Understanding......Page 124
Preparing for an Overseas Trip......Page 125
Getting To Know International Customers......Page 127
Using U.S. Embassies for Meetings......Page 128
Other Types of Customer Meetings......Page 129
Case Study: Using Customer Visits To Resolve
 a Collection Issue......Page 130
Potential Areas of Conflict......Page 132
Three-Pronged Approach......Page 133
Other Relationship-Building Approaches......Page 135
PART FIVE CREDIT INSURANCE......Page 138
15 Export Credit and Political Risk Insurance......Page 140
Improve Financing......Page 141
Mitigate Risk......Page 142
Other Considerations......Page 143
Short-Term Credit Insurance Market......Page 146
Developments in the 1990s......Page 147
Credit Insurance in the United States......Page 148
Finance and Credit Insurance......Page 149
Credit Control: What Next?......Page 150
International Credit Products......Page 151
E-commerce Trends......Page 152
B2B: The Challenge for the Insurance Industry......Page 154
What Solutions Do Credit Insurers Propose?......Page 155
Conclusion......Page 157
17 Credit Insurance Case Studies......Page 158
Catastrophic Loss Scenario......Page 159
Evaluating Credit Insurance Policies......Page 160
Employing Credit Insurance To Meet Corporate
 Growth Initiatives......Page 161
Additional Benefits to Expansion Efforts......Page 162
Financing Facilities Enhancements......Page 163
Borrowing Enhancement Scenario......Page 164
Global Risk Management......Page 165
Conclusion......Page 167
PART SIX FORFAIT......Page 168
How Forfaiting Works......Page 170
How To Pick a Forfait House......Page 171
Credit Issues......Page 172
Discount Pricing......Page 173
Uplifts......Page 174
19 Forfaiting Case Study......Page 178
Historical Background on Secure Communications Corporation......Page 179
Forfaiting Solution......Page 180
Bid......Page 183
PART SEVEN GOVERNMENT PROGRAMS......Page 186
U.S. Government Support for U.S. Exports......Page 188
Export-Import Bank Programs......Page 189
Export-Import Bank and Small Business......Page 191
GSM-102 and GSM-103 Programs......Page 192
GSM Guarantee......Page 193
Eligible Commodities......Page 194
Supplier Credit Guarantee Program......Page 195
Overseas Private Investment Corporation......Page 197
OPIC Financing Programs......Page 198
SBA Financing Programs......Page 199
SBA Technical Assistance Programs......Page 200
Defense Export Loan Guarantee Program......Page 201
Creative Export Financing Workshops......Page 204
Introduction......Page 206
Data Protection Act of 1998......Page 207
Personal Data and Processing......Page 208
Concept of Advise and Consent......Page 209
Obligations of Those Holding Data......Page 210
Rights of the Individual: The Data Subject......Page 211
Impact of Legislation......Page 213
Summary......Page 215
PART EIGHT BARTERING AND COUNTERTRADE......Page 216
Barter......Page 218
Bilateral Trading Agreements......Page 219
Documentation......Page 220
Government Policy......Page 221
Potential Problems......Page 222
Background......Page 224
Handling Deduction Issues......Page 225
Today’s Market......Page 226
Additional Information......Page 227
Case Study Conclusion......Page 228
PART NINE LETTERS OF CREDIT......Page 230
Working Effectively with Letters of Credit......Page 232
Required Information......Page 233
Uniform Customs and Practices 500......Page 234
Special Services......Page 235
Types of Letters of Credit......Page 236
Unworkable Terms......Page 242
Minimizing Unworkable Conditions......Page 243
Avoiding Merchandise Problems......Page 244
Avoiding Documentation Problems......Page 245
Common Mistakes......Page 246
PART TEN TECHNOLOGY......Page 248
Trade Payment Wizards......Page 250
Offer Extended Terms to Canadian and British Customers
 Using Trade Acceptance Agreements......Page 252
Bolero......Page 253
Chevron’s Corporate Policy......Page 258
Secured Messaging......Page 259
Public Key Infrastructure......Page 260
Case Study: Using Encryption at Chevron......Page 261
History of Credit Scoring......Page 264
Z-Score......Page 265
Emerging Market Model......Page 266
Types of Scorecards Available......Page 267
What Credit Executives Thought......Page 268
29 E-commerce and International Credit Executives......Page 270
New Expectations......Page 271
Effect on Credit......Page 272
Electronic Signatures......Page 273
Credit Groups and Credit Circles......Page 274
30 Professionalism in International Credit......Page 276
Organizations......Page 277
The Internet......Page 278
Certification—CICE......Page 279
Terms of Sale......Page 282
Arbitration......Page 283
The Internet......Page 284
Index......Page 286