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Products
& Services
Payment
Instruments
Electronic
Funds Transfers (E.F.T.)
Timing
is everything. Especially when it comes to cash flow. Meeting
terms on foreign payments can oblige you to release funds before
it is ideal to do so. It can also hamper your recipient's cash
flow as funds clear through international bank channels.
International Wires (or Electronic Funds Transfers, as they are
sometimes called) provide a mean to retain funds as long as possible
while ensuring the satisfaction of beneficiaries. With InterCredit,
Inc., international wires you can:
• Enjoy the security of knowing your instructions are fully
traceable
• Take advantage of low, per-wire flat rate fees
InterCredit,
Inc., maintains an array of correspondent’s Bank accounts
of over 50 different currencies, enabling the execution of EFT’s
in a quick, secure and efficient method to electronically transfer
funds abroad.
Foreign
Bank Drafts:
Paying
foreign suppliers in domestic funds can easily result in underpayment
or, equally unfortunate, overpayment, as currencies fluctuate
between the time payments is issued and the time it clears. Foreign
suppliers may also be displeased as they await clearance of your
check.
From
the convenience of your office you can place an order with us.
InterCredit, Inc., can provide your company with foreign drafts
drawn on mayor U.S. or foreign banks, denominated in more than
36 currencies. Drafts will be delivered per your instructions
and in most cases we will pick up your payment at your location.
Foreign
Exchange Drafts from InterCredit, Inc., allow payment in your
beneficiary's currency without imposing lengthy delays while awaiting
clearance of a check from abroad.
Through
InterCredit, Inc., you can:
•
Dramatically reduce the time required to access funds
• Issue drafts in a wide variety of currencies
• Save money with an economical way of making global payments
Strengthen
global business ties by providing exact payment in a timely manner
with Foreign Currency Drafts from InterCredit, Inc.
Hedging
Tools
Foreign
Exchange Forward Contracts
For
companies anticipating foreign transactions within the next year,
Forward Contracts are hedging tools that will help them manage
their Foreign Exchange risk, enabling them to buy or sell foreign
exchange at a fixed rate for settlement at a predetermined future
date.
This tool allows companies to lock in their forecast profits,
since all adverse rate fluctuation is eliminated for the duration
of the contract. The minimum contract amount is the equivalent
of US$ 5000.00 in foreign funds.
Usually only a small % percentage collateral is required at the
time of the purchase.
By
using Forward Contracts, you can:
•
Protect costs on products and services purchased abroad
• Protect profit margins on products and services sold abroad
• Lock-in exchange rates as much as a year in advance
Forward
contracts are used as a method of hedging commercial risk against
rate fluctuations; therefore, such a contract may not be used
for speculative purposes as it is prohibited by Federal Reserve
Board regulations.
There
are two types of Forward Contracts:
1.
Open Forward Contracts:
This
instrument calls for a flexible payment period (Window) prior
to the maturity date of the contract. This product is used when
the client in uncertain of the specific date of payment during
the open period of the contract.
The contract may be utilized at any time during the open period
and must be used in full by maturity date. Commonly the flexible
payment period or window is from one week to one month.
2.
Closed Forward Contracts:
A closed
forward is settled on a predetermined and specific agreed upon
maturity date. This kind is used when there is certainty that
payment must be made by a specific date, therefore not requiring
a flexible payment period within the life of the contract.
Foreign
Currency Accounts:
Foreign
Currency Accounts give corporations the ability to purchase blocks
of foreign funds when Rate of Exchange is favorable.
InterCredit, Inc. holds funds in reserve until the company draws
down on the funds as invoices become due.
Foreign
Exchange Check Collection:
InterCredit,
Inc., provides Foreign Check Processing Services. Because of the
competitive nature of international business today, many companies
find that they can enhance customer services and increase sales
when they are prepared to accept foreign currency checks as payment
on international transactions.
InterCredit,
Inc., will price and repatriate your Foreign Currency Checks for
conversion to U.S. dollars or Euros.
Simply call our experienced foreign currency dealers to take advantage
of these services.
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