Trade Aid

By Cynthia E. Griffin

Just when small businesses are venturing into the waters ofinternational trade in ever greater numbers, big banks are slowlyeasing out of the financing side of international business, leavinga growing hole in the market. In California, one smaller bank isstepping into the breach.

"We specialize in trade financing and offer lines of creditof up to $10 million," says David Wong of the PacificBank's Los Angeles branch. "We target companies with salesranging from $1 million to $50 million, but we cater especially tosmall business."

The Pacific Bank, which works almost exclusively in California,helps with letters of credit for existing and start-up companieswhose principals have prior experience in an industry. The bankwill also help facilitate production once there is a confirmedletter of credit and a purchase order.

Wong offers a few tips for getting bank financing:

* Talk with your attorney or CPA to find banks that might be goodtrade finance partners.

* Look for a bank and loan officer with at least two to threeyears' experience in trade finance. Also make sure the personis knowledgeable about programs (government and private) availableto help you import and export.

* Seek an institution that targets importing and exporting ingeneral, not just one segment of the market.

* Choose a bank big enough to have an international department butsmall enough to truly want your business. Banks withoutinternational departments may offer to act as your correspondentwith an international bank, but keep in mind this simply addsanother layer of people you have to work with.

* Finally, if you only handle one transaction a year worth under$5,000, don't look for trade financing. It's notcost-efficient unless you have multiple deals of this size.