The sun., 1919-05-19

LOOKING Tor tra0o expansion WOulu place
this question Of doubt as to honesty
and integrity entirely out OF his mind
and profit by the experience of those
who have blazed the pioneer trails.
The matter of obtaining credit infor-
nation regarding prospective buyers in
South America is the first thing that
should DO cleared by the manufacturer
who 10 prepared to do business and who
decides to give credit. 1t lie becoming
simpler every day. Once the manufac-
turer IL satisfied that the customer IL
good" the technique of financing the
sale is not difficult-oRly q matter Of
detail
The leading banks in New York city
and other principal American ports are
we'll equipped to furnish credit informa-
ton to their clients. The reliable mer-
camille agencies are now in position to
give credit information at a nominal
fee. There are many quasi-public as
sociations, one of whose functions Is
to look UP credit information for their
members. II manufacturer has
reached that development in his busi-
ness where he can AFFORD TO put q sales
man on the road he can depend on his
salesman for considerable credit data
This presupposes the salesman's capa-
bilities, however.
Bank Connections Important.
But the manufacturer who is not yet
In position to be personally repre-
sentod In South America, and who IL
receiving orders by mail or cable from
customers he does not know, had better
make proper connections with a bank
and subscribe to every available and
reliable mercantile credit agency. The
| modern bank Of to-day-there are many
In New York-is efficienuy equipped to
finance foreign business.
1t maintains large star whose func-
tons are to handle the business of
particular foreign territory.
1t will forward drafts for collection.
or discount them SO that the manu-
facturer may have his cash without
the necessity OF waiting sixty or ninety
| days. II Will also keep the manufac-
turer In touch with market conditions
in the countries in which he Is doing
business
| 1t will suggest, advise ana cooperate
In every way possible to make the
manufacturers business as simple as
possible. Our banking facilities for do
ing business with South America are
now becoming so efficient that, once
making sure Of your customers stand
ing, the matter of obtaining payment
for goods sold is merely one OF detail
Now let US turn back to the problem
OF the manufacturer of Photographs. He
has decided to send the goods to the
man In Ecuador, thanks to the sales
managers arguments. The credit man
Is instructed to 60 to the bank to in
ouire about the customer. Perhaps the
bank Is at the moment unable to fur
nish all OF the information desired. The
credit man may then go to the mercan-
tile agencies or to some other private or
ganixations that claim to be able to get
the data, or he may be able to get addi-
tional information from a firm that has
had dealings with this man. After piec-
ing all these bits together he decides
that the Ecuador man Is a good credit
risk. The goods are then ordered from
the factory. packed up according to In
struction and shipped to Ecuador.
How the Exporter Gets His Money.
Now this Is how the manufacturer
gets his money. The man from Ecuador
has asked for ninety days credit. docu-
ments against acceptance OF draft. This
means that the moment he accepts the
draft at the other end. that Is, agrees to
take IT UP at the end Of ninety days from
certain date mutually agreed upon. he
VIII be given possession OF all the docu-
ments peculiar to the transaction, with
which he will be able to take the goods
out OF the customs house. Before ship
ping the goods, however. the manufac-
turer in New York draws on the Gus
toner In accordance with his wishes, at
taches the necessary documents to the
draft. sends the complete set of papers
to the bank. discounts the draft and re-
ceives cash on the spot The bank then
forwards the draft and instruments for
collection at the proper time.
This in general Is one of the methods
OF financing a transaction with a Gus.
toner in South America. There are
several other ways which the manufac.
turer can follow, and which he should
| know about. The bank he is doing bust.
ness with will explain and suggest the
most satisfactory method. but no bank
In the world will take up a draft unless
there Is certain assurance that the
man at the other end Is capable OF hon.
or!ng II when presented
The first thing the manufacturer must
understand. therefore, is that he has
got to give credit. He cannot give credi,
unless he knows something about the
man to whom he is shipping the goods
This Is the credit mans job. Not only
should the credit man know about the
specific qualifications OF the customer
but he should also be we'll posted on the
condition OF the country as a whole. the
stability OF the Government. the extent
OF the market, the possibilities of trade
In particular line. the commercial laws
of the country to which goods are to be
sent and other information along similar
lines. In other words, he should be vel
read. With all this information at his
hhger tips and with additional assis-
lance from the bank he should have nc
trouble In financing his shipments