If your business involves buying from outside of Canada, CIBC offers a full range of trade solutions to help you manage a smooth trading process and help you minimize the risks and concerns associated with bringing goods into Canada.
CIBC Import Services could be for your company if any of the following apply:
- An Import Letter of Credit is required to facilitate a transaction.
- Your suppliers want peace of mind with an Import Collection.
- You require professional, knowledgeable advice about dealing with unfamiliar overseas suppliers.
- Your transaction volumes require efficient, state-of-the-art technology for initiating and tracking Letters of Credit.
Import Letters of Credit
When you need to provide your suppliers with payment assurance, or a mechanism that allows them to obtain local financing, an Import Letter of Credit is the answer. An Import Letter of Credit represents CIBC's undertaking to your suppliers that they will receive payment for merchandise shipped to you upon delivery of documents specified in the Letter of Credit within a stipulated time. For you, the importer, using an Import Letter of Credit gives you greater control over shipping dates, which allows you to structure your purchases and synchronize them with your inventory requirements and cash flow demands. Furthermore, it reduces the risk of having to pay in advance for imports and protects you against paying without receiving the import documents stipulated in the Letter of Credit.
What's unique about CIBC's Import Letter of Credit services?
CIBC uses the services of The Bank of New York, a world-class provider of Letter of Credit services, to process CIBC Import Letters of Credit. Besides enjoying the outstanding customer service provided by The Bank of New York, our clients have access to superior technology platforms for the initiation and tracking of their Import Letters of Credit - CommLinc LC™ and Global Trade Information™. Furthermore, our alliance with The Bank of New York gives us access to its extensive network of global connections, which we can use to the benefit of our clients.
CommLinc LC and Global Trade Information
CommLinc LC and Global Trade Information are automated Import Letter of Credit initiation and tracking systems offered to CIBC clients, and are linked directly to the Import Letter of Credit processing centre. These applications provide our clients with a simplified method to prepare, submit, and monitor their Letter of Credit transactions using their own computer, thus increasing the overall efficiency of clients' communications with CIBC and their suppliers. These electronic Letter of Credit platforms also allow clients to generate standard, and customized, reports to facilitate better record keeping.
Transferable Letters of Credit
When the beneficiary of the Import Letter of Credit is not the actual supplier of the goods (that is, a middleman), a Transferable Letter of Credit may be used. A Transferable Letter of Credit is a regular Letter of Credit with an additional term that allows a named bank to transfer an amount of the Letter of Credit to one or more suppliers. This transfer is completed at the request of the original beneficiary of the Letter of Credit. Letter of Credit transferability expedites global trade transactions and structures them to meet your business needs by affecting a seamless and transparent transfer of funds to suppliers. All stakeholders in the supply chain benefit from the CIBC Letter of Credit flexibility and functionality.
When the business relationship between you and your suppliers is well established and they no longer need payment assurance in the form of a Letter of Credit, you may agree to use Documentary Collections to facilitate your business transactions. An Import Collection calls for your supplier to forward all shipping documents, including a bill of exchange, to CIBC with instructions to deliver these documents to you, the buyer, after collecting payment (or against a promise to pay on a specified date). This still allows you to review key documents before paying your supplier and eliminates the need for advance payments and deposits. Import Collections do not use your line-of-credit facilities and since they do not involve an undertaking from the bank to pay your supplier, are more cost-effective than Import Letters of Credit.
In addition Import Letters of Credit and Collections, CIBC Global Transaction Banking offers a range of other products and services to help you create, protect and realize value in your business. Our products are designed to facilitate domestic and international trade transactions, help you mitigate foreign buyer risk, accelerate cash flow and provide trade-related financing. Our trade experts can provide assistance in negotiating the financial aspects of your contract, share their knowledge and experience of local and foreign markets, and answer any questions you may have about our products.
Your success means the world to us®
We are here to help you structure your transactions and offer creative financial and business solutions to suit the immediate and long-term trade-related needs of your company.