International Banking
Incoming & Outgoing Wire Transfers
- Originates in U.S. dollars or foreign currency
- Value dated for settlement in near future (typically next business day)
- Fund settlement is faster than sending a check
- Large wire transfers may receive preferred rates
- Funds received at beneficiary's bank are immediately available for withdrawal
- Client information (purchase orders or remittances) can be transmitted
- Ability to trace
Documentary Letters of Credit
- Promise to pay guaranteed by First Business Bank
- Satisfies requirement set by vendor or other interested party
- Creates credit availability to make payment
- Able to purchase goods and services otherwise paid for in advance
- Product must conform with rules and specifications for payment to be made
- Fee is less than the cost to borrow funds
Forward Contracts
- Wire of funds on a specified date at a contracted, pre-approved rate
- Client must have funds available when contract matures
- Rate is negotiated and guaranteed at the time of purchase
- Various options available
- Specified date can be at various future dates (for example: three, six, or twelve months)
Foreign Drafts
- Check drawn on foreign bank in foreign currency
- Smaller dollar denominations
- Avoids check(s) going for collection and delays in shipment
- Avoids fee applied to converting check drawn in U.S. dollars
Foreign Exchange Options
- Allows for purchase of foreign currency at a future date
- Call contract at any time before maturity
- Collateral is typically not needed in these transactions
- Option to set rate range based on risk tolerance
Sweeps
Zero Balance Accounts
- Reduces fraud
- Notifies of account transfers
- Automated — no need for manual intervention
- Increases earnings
Funds Management Sweep
- Maximize interest earning ability
- Reduce interest paid on loans
- Reduce service charge expense
Investment Management Sweep
- Leverage funds to earn more interest
- Automated — no need to monitor account balances
- Reduces service charges
