We are a small manufacturer of custom industrial equipment sold all over the world. Because the equipment is custom, most of the order is paid before the order is shipped, nicely limiting our credit exposure. Although we have been in business for 30 years and are a reputable company that always stands behind its equipment, we are understandably receiving more and more requests from customers who are looking for some guarantee they will receive their equipment as promised. I am told that European banks often provide a Bank Guarantee to mitigate this risk for the customer but that no American banks provide them. Since letters of credit are both expensive and cumbersome, we are looking for some other alternative. Any suggestions?
Thanks,
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Christine Wilfer CMA, CFM
XDS
Appleton WI
United States
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