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Trade Finance
Perhaps the sternest challenge faced by exporters and importers is
financing their transactions. Unlike purely domestic transactions, financing
international transactions must deal with differing currencies, multiple asset
and product locations, varying delivery times, and conflicting legal regimes.
Documentary letters of credit are the primary vehicle of international trade
finance due to the protections offered to both exporters and importers and to
the broadly accepted rules and customs governing them.
Drafts and acceptances are also widely used, often in conjunction with
documentary letters of credit, as trade finance payment mechanisms. It is
critically important for legal counsel to be intimately familiar with the
intricacies of these various financing instruments.
Legal services include counseling and representation regarding the following:
● Documentary letters of credit
● Standby letters of credit
● Letter of credit confirmations
● Documentary drafts
● Bankers & trade acceptances
● Payment against documents
● Seller-financed transactions
● Forfaiting
● Factoring
● Forward contracts
● Export credit insurance (FCIA)
● Foreign investment insurance (OPIC/MIGA)
● SBA & Export-Import Bank trade financing
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