International banking is a necessary tool for successful export and international trade business and activities. It is especially important when dealing in foreign currencies. There are many banks offering international banking services, but it is necessary to choose a bank that is adept in providing the required international services and products that the business requires. International banking accounts are especially important to businesses which the nature of the business is the import and or export of goods. International banking is offered both onshore and offshore. While domestic or onshore international banks will offer the full ranges of international banking services, domestic banks would not benefit from the tax benefits offered by offshore international banks.
International banks offer many products and services that enhance any global company’s business. International banking is used by multinational corporations, commodity companies and international producers and manufacturers. The most important and most common product offered by international banks is the letter of credit for both import and export activity. This letter of credit is a critical tool that allows businesses to secure credit and sale terms between themselves.
Until recently letters of credit were only available in physical form and took time to be sent between companies, whereas today, web based financial products such as on-line letters of credit are available as a service from some international banks. Other value added trade related international banking products offered should include services that enhance any import or export or international business:
There are many well known and reputable international banks located globally, found on mainland USA, Europe and Asia, Australia, Canada. Most offshore banks offer comprehensive international banking services and products. The added benefit of an offshore jurisdiction is the privacy and confidentiality factor, not found with domestic international banks.
The international banking services offered by both domestic and offshore international banks may vary but may include:
Though not all of the above services are offered by all banks either offshore or onshore, international banking services should at all times facilitate prepayments and structured pre-exporting of goods, insurance and guarantee programs where programs offered locally or through the bank can be engaged to basically reduce the level of risk of the company. There are international programs such as those through world banks and other large banks that offer guarantees as credit support and enhancement.