A report on what your local banker says he or she can do to help you Research Paper

A report on what your local banker says he or she can do to help you get paid from abroad by customers of your new small export - Research Paper Example Following section will discuss as to what our local banker can offer to us as an exporting company. Financing Facilities for Exporting Company During our discussion with the banker, we came to know that an exporting company can have access to different sources of finance to help it achieve its overall organizational objectives. First source of finance identified by our banker was for the purpose of meeting our working capital requirements including sourcing raw materials, managing our receivables as well as paying our overheads and salaries. Our banker informed us that exporters often enjoy concessionary rates of interest on such working capital facilities because they help bring the country the precious foreign exchange which is essential for managing balance of payments of a country. The export related financing for meeting our working capital requirements however, was related with our ability to take the new orders and financing, according to banker, will be limited to the amount of orders we receive. Another important source of finance identified by our banker was the discounting of letter of credits which we receive from our buyers in international market. As one of the conditions of our dealings, we will ask our customers to open a letter of credit in our favor thus providing us added security and safety.