Doing Business In (Insert Country Name Here) - BNA

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Chapter 7: Trade and Project Financing
• How Do I Get Paid (Methods of Payment)
• How Does the Banking System Operate
• Foreign-Exchange Controls
• U.S. Banks and Local Correspondent Banks
• Project Financing
• Tenders for European Public Procurement contracts
• Web Resources
How Do I Get Paid (Methods of Payment) Return to top
For U.S. exporters, financing export sales is basically the same as financing domestic
sales. The fundamental concern in both cases is that one is paid in a timely manner for
the goods and/or services delivered.
France's modern banking system offers a full range of payment means, the most
significant of which are:
• Commercial letters of credit
• Sight and time drafts
• Bank transfers
• Certified checks
Electronic payments including electronic payment orders, pre-formatted inter-bank
payment orders, electronic commercial trade bills, and electronically processed
promissory notes. As from January 28, 2008, businesses are able to make faster euro
credit transfers in the Single Euro Payments Area (SEPA). By the end of 2009,
payments with direct debit will follow and businesses will be able to set up cross-border
direct debits in euros between any two SEPA countries. SEPA will also help businesses
simplify business management, as all financial transactions can be done centrally from
one bank account using SEPA payment instruments.
Although bank transfers and certified checks are fairly self-explanatory methods of
payment, commercial letters of credit and sight and time drafts may be less familiar to
the would-be exporter but are potentially attractive terms of payment.
How Does the Banking System Operate Return to top
The French banking system underwent a fundamental structural reform in 1984, which
removed most of the distinction between commercial banks and merchant banks and
grouped most financial institutions under a single supervisory system. The largest
French commercial banks, such as Crédit Agricole - LCL, Société Générale, BNP
Paribas, Natexis, Crédit Mutuel - CIC group, and HSBC rank among the largest banks in
the world. These commercial banks offer all classic financing instruments, including
short, medium, and long-term loans, short-and medium-term credit facilities, and
2/15/2008 Country Commercial Guide for France 124
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