In most export transactions, the exporter will require the services of a Canadian bank. In many cases the project financing will be a co-operative arrangement between the government agency or international financial institution and a Canadian bank or banks. Major Canadian banks have international centres across Canada and have branches or affiliates around the world. In countries where Canadian trade posts do not exist, Canadian banking facilities may be available for use by visiting Canadian construction firms and other exporters.
Canadian banks can work with the exporter in many ways.
Letters of credit, foreign exchange, foreign collections, mail and cable payments, import-export statistics, information booklets and other specialized services are generally available. Banks provide a service of particular interest to the Canadian contractor through the arrangement of a number of frequently required guarantees. Letters of credit are often used for these purposes. The value of a letter of credit is related to the strength of the bank that issues it. For example, some foreign banks may issue credits that cannot be easily negotiated in Canada or other countries if the bank's financial strength is in doubt.