Foreign Markets

Bring Out Your Full Potential in Investment through PSS’s Extensive Global Approach

Foreign markets present lucrative opportunities for expansion. However, different legal systems, languages and trade systems, along with the economic and political situations of a country, make these business undertakings more risky than domestic businesses. PSS’s representation and experience in emerging markets, and our presence in all major financial centers, enable us to deliver a 24-hour foreign market service sensitive to regulatory and risk factors in emerging markets globally, giving our clients total control and peace of mind.

PSS will turn the international market into a domestic one when.

  • Entering a new market
  • Developing foreign trade relationships
  • Assessing developments in foreign countries
  • Reducing potential risk

Documentary Business

In foreign trade, importers focus their attention primarily on the timely delivery of the agreed upon quantity and quality. Whereas, for exporters, assuring on-schedule payments in the agreed currencies is the first priority.

Methods of Documentation

Collection Documentation

It refers to the collection of receivables through a bank with documentation. Both essential types of collection documents distinguish between the completion of the documents against payment or against the acceptance of an exchange. Payment processing by means of collection documentation requires that there be no doubt about the contract partner’s willingness to pay and the ability to deliver.

Advantages of Collection Documentation

1. Simple and inexpensive handling compared to the letters of credit
2. Faster receipt of payment than open account terms
3. More flexible in allowing the exporter and importer to vary terms between themselves
4. Equal risk for business partners

Letter of Credit Documentation

It consists of the contractual obligation of a bank with a mandate to provide a specified monetary payment after a customer provides proof of the submission of specific documents and the satisfaction of certain conditions. This obligation is abstract because exceptions to the underlying transaction are not possible. Letters of credit have both a security/payment and financing function. Depending on the scope, you basically decide on:

  • Revocable letters of credit – can be altered or cancelled at any time by the initiating bank even without informing the beneficiary, and thus provide no security for the exporter.
  • Irrevocable letters of credit – establish a firm commitment on the part of the initiating bank and can be neither changed nor cancelled without the consent of the initiating bank, the possible accepting bank and the beneficiary.
  • Irrevocable, confirmed letters of credit – aside from the commitment of the initiating bank, such letters also establish a separate payment commitment for the accepting bank.

Non-documentary Business

International non-documentary foreign trade consists of all foreign money transactions for which no documents are used.

Whether the transaction is in foreign currency or not, as a receiver, you expect your financial institution to credit your account with incoming payments; whereas, as a sender, you expect your financial institution to record the transfer of your outgoing payments.

To make the transactions easy for you, Private Scandinavian Sparkasse Investment Bank formulated the right solution for both sides as we provide you with liquidity planning opportunities for financing and securing receivables and services. In this matter, PSS’s E-Bank would be very helpful to you. The non-documentary foreign trade guarantees may contain conditions of payment which are framed in factual instead of documentary terms.

Foreign Trade Financing

With regard to export contracts, the exporter’s financing following shipment often plays an important role not only by ensuring the exporter’s liquidity until delivery of the goods and receipt of payment, but also in ensuring the exporter’s competitiveness in the bidding stage by being able to offer competitive credit terms.

To ensure timely solutions, financing should therefore be discussed with us at an early stage, and important issues should be solved as early as possible in the bidding phase. This requisite is placed in order to secure an optimum starting point for the procurement of orders.

What Private Scandinavian Sparkasse Investment Bank offers you is information in choosing the right financing instrument, and protection against possible risks. Further, PSS will support you with tailor-made solutions. In addition to the structuring and handling of traditional medium-term and long-term export financing transactions, PSS’s portfolio ranges from instruments for short-term trade financing and forfeiting to structured finance and multi-source financing, i.e. the creation of financing packages from several countries depending on your preferred delivery and service structure.

By taking advantage of trade financing, the exporter has the advantage of saving his own credit lines, and thus keeping financing leeway for his own investments. Furthermore, the credit assessment of the buyer’s side, which is often a hard task, is transferred to the financing bank.

Foreign Exchange Rate

Take advantage of the changes in value in the international trading of currencies, making the most of the benefits offered to you by PSS FOREX.

International trade and investment is dependent upon a determination of the relative values of different currencies. The exchange rate between two currencies is an expression of the rate at which one currency can be converted into the second currency. The exchange rate can be influenced by political and economic factors, including economic growth, inflation, political stability and market trading or psychology. Private Scandinavian Sparkasse Investment Bank will provide a link between you and foreign exchange markets to put up an open market trading platform for your investment activities.

With us, you can trade foreign currency through PSS FOREX as you can easily get hold of the most current and detailed overview of market events with the foreign exchange information and trading system. Maximize your winning potential with the least possible losses through innovative and reliable trading tools only provided by one of the world’s leading foreign exchange companies. Our team of experienced currency specialists can provide you with up-to-date information on currency markets to help you make informed decisions and take advantage of any opportunities that may arise.