Spot Contracts

Spot foreign exchange contracts provide the most immediate conversion of one currency to another. For most countries, payment typically would be achieved within two business days. Spot contracts are useful in handling payables or receivables involving a foreign currency. Payments in advance, open account settlements and letters of credit all can be handled by spot contracts. This is a simple but effective means of making payments internationally.

Foreign Currency Payable

Your company purchases auto parts from Japan. The invoice is received and due in Yen immediately. California Bank & Trust can pay the full Japanese yen amount and debit your account for the US dollar equivalent.

Foreign Currency Receivable

Your company sells computer equipment to Canada. The Canadian buyer agrees to make payment in Canadian dollars as soon as the equipment is received. The customer is given California Bank & Trust's Canadian banking procedure instructions and CB&T converts the Canadian currency to the US dollar equivalent and US dollars are credited to your account.