Page 186 - A Banker Down the Rabbit Hole

54. Challenging the status quo-

Exporter with a single buyer in New

Zealand

W While working as head of Export Department of the

branch at Hong Kong, I started scrutinizing the bills not
paid, every week, as a step of follow up as per standard
guidance from the bank. I noticed that some buyers had
been delaying the payment by about a couple of months beyond the due
date. I sent a template reminder to all overseas buyers (called drawees
of export bills of our customers) to make payment of the bills drawn by
our customers in time.

Different Responses for a common action
The responses received from all the customers were different. Some
enquired why we were chasing these buyer parties when the sellers (our
customers) have the full liability to repay if other party does not send
payment of the bills covering exported goods. We explained, "This was
in your interest that the buyer does not delay your payment any further
after getting a reminder. Your credit record will be spotless if your buyers
send payment to the bank without seeking more time beyond the
recorded due date. If your buyers persist in delayed payment more often,
they may get black listed and you may not get facility against export bills
drawn on such parties. Eventually, your credit lines will be pruned down
or cancelled unless you add new buyers with satisfactory credit reports
on them from the buyer's banks."

A few of our customers complained why we had written to their buyers
for timely payment as this had scared them and also had strained their
mutual relations with them. Furthermore, they might not like export bills

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