Exporting & Export Finance to USA

United States-Singapore Free Trade Agreement (USSFTA)

The United States-Singapore Free Trade Agreement was implemented in 2004, and phased in the elimination of tariffs for Singapore exports to the USA.

The Agreement, as well as removing non-tariff barriers to enable keeping the cost of business low and making exports more competitive, focused particularly to aid the following sectors:

• Chemicals & Petrochemicals
• Electronics & Information Technology
• Precision Instruments
• Processed Food
• Textiles

Payment Culture

The payment culture of US domestic companies is becoming increasingly uncertain and in the absence of a clear framework on late payments, payment terms remain more of a contractual issue.

‘Days Sales Outstanding’ (DSO), the term used to explain the likely receipt of payment, is not as bad as in some other countries. Payments in the US normally take place within 28 days, though delays of 5 to 10 days tend to be increasingly imposed by large companies who may negotiate agreements on their terms, rather than yours.

Insolvency

When the debtor becomes insolvent, collecting debt becomes a complex task. The bankruptcy system remains pro-debtor and making a company insolvent is not generally a way to obtain payment. In practice, bankruptcy reorganisation is resource-draining and rarely results in general unsecured creditors receiving any money.

Regulatory environment

The United States has a federal structure consisting of fifty states and one federal district (Washington, D.C.), each characterised by specific rules and specific courts. Disputes are normally settled at the state level through State and County Courts of general jurisdiction, but Federal District and Regional Courts would have exclusive jurisdiction over matters falling under the scope of application of federal law (international trade, federal claims), or when the dispute involves parties located in different states and a balance of over USD 50,000.

Our Export Factoring experts are happy to help make exporting easier, discuss your ideas and offer finance solutions tailored to your company needs.