Credit managers do not often enough take advantage of potential partnerships with their banking partners, speakers during NACM’s 120th Annual Credit Congress & Expo suggested this week.
Closer relationships with banks while selling on terms to and collecting from businesses in foreign markets can often reduce problems in various areas including nonpayment and compliance.
“We can’t replace your compliance team, for example, but we can take some pressure off of you with our resources,” said Nelson deCastro, of Wells Fargo Bank, N.A., during an FCIB-designed session about banking partnerships. “Go for it.”
A key consideration when selecting a bank to partner with is to find one that has strong connections and resources in the countries in which you are dealing, especially ones facing volatile times. Oftentimes, a bigger domestic bank will need to itself partner with a bank closer to the destination of creditor’s products or services.
“We’re not good at underwriting in Brazil—a local bank is going to be better at that,” deCastro said. “Choose a bank in the U.S. that has the ability not to underwrite the companies in Brazil, but essentially underwrite the bank that is in Brazil.”
- Brian Shappell, CBA, CICP, managing editor