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Asian and North American suppliers often marvel at the ability of European competitors to garner market share in Latin America. After all, they have higher prices and often face trade barriers as well. The answer is that credit, not price, is King in Latin America. The region's banks are weak, timid, and expensive, leaving importers with little support at home to finance their inventories. The same goes for the other re-sellers all the way down the distribution chain to the end-user. Importers, distributors, wholesalers, dealers, retailers and consumers all turn first to the supplier that offers credit. Foreign suppliers that offer credit often sell at a 20-to-25% premium compared with competitors that demand some form of upfront payment such as a letter of credit.