A US-based finance company has established a new division that will provide letters of credit (L/Cs) specifically for businesses involved in trades between Asia and the US.

But Capital Business Credit (CBC) says it is also looking at targeting customers wanting to move away from L/C trades towards open account transactions.

Office locations

The new division, CBC Trade Finance, is headquartered in New York with offices in Hong Kong and Shanghai.

As well as L/Cs, CBC offers factoring, asset-based lending and a range of other international trade financing products.

New offering

According to a company statement, CBC is keen to offer services designed to take advantage of a perceived shift away from L/C to open account transactions.

The company reckons it can do this through its Supplier Early Payment Programme, in which US importers are provided up to 120 days to settle invoices while Asia-based manufacturers are paid 100 per cent of their receivables, without recourse, upon shipment of goods.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.