IMPORT / EXPORT TRADE FINANCE
We provide our
Trade Finance Facilities in terms of Letter of Credit (LC), Standby Letter of Credit (SBLC), Bank
Guarantee (BG), Performance Guarantee/Bond (PG/PB), Bank Comfort Letter (BCL)
& etc ., for those who do not have enough Bank Facilities to complete
their trade transactions.
Letter of Credit | L/C
Standby Letter of Credit | SBLC
Bank Guarantee | BG
Tender Bond Guarantee | TBG
Advance Payment Guarantee
Bank Comfort Letter | BCL
The Documentary Letter of Credit known
as LC or DLC is a
written undertaking given by a bank to the seller (beneficiary). The Letter of
Credit or Documentary Credit is a technique for financing International trade
by which a bank (issuing bank) takes the irrevocable commitment, at the request
and for the account of its client (applicant), to pay the exporter
(beneficiary) against the handing-over of various documents complying with the
terms of the credit, proving forwarding and the nature of the goods stipulated
in the pro-forma invoice or commercial contract within a set time limit.
beneficiary of Letter
of Credit may also obtain from their bank a credit line or
packing credit to mobilize their export and their bank will receive the advance
funding from the proceeds of Letter of Credit once they negotiate it.
/ Lender provides Irrevocable, Transferable Letter of Credit (MT-700) at Sight
or Deferred Payment for importers who do not have cash flow or bank facilities
to run their business.
LC or SBLC
(MT-760) is a Standby
payment guarantee issued
by a bank on behalf of their client that is used as “payment of last resort” if
the client fails to fulfill a contractual commitment with a third party.
Standby Letter of Credit is created as a sign of good faith in
business transactions and are proof of a buyer’s credit quality and repayment
Letter Of Credit is often
used in International trade transactions, such as the purchase of goods from
locally and internationally. Standby Letter of Credit can be used as Collateral
for Credit Enhancement. It is ideal for companies planning to expand their
business and do not want to give up equity of their company. This improves
company’s cash flow as it allows the company to use their funds for alternate
purposes before payments become due.
Our experts are structuring Standby Letter of Credit to meet
your business needs while helping to protect your interests to the extent in
every possible circumstance.
/ Lender has been
providing Standby Letter of Credit on behalf of their client/buyer to
fulfill a contractual commitment towards the supplier/ beneficiary.
Bank Guarantee (MT- 760) is an irrevocable commitment issued by a bank on behalf of their
customer who has entered in a contract to purchase goods from a supplier and
promised to meet all financial obligations to the supplier in the event of
default. In other words, a Bank Guarantee is an undertaking of a bank on behalf
of its customer.
A Bank Guarantee often helps firms
conduct their business with parties they would never normally get the chance to
deal with. Many suppliers will often choose to do business with customers that
have a Bank Guarantee because it eliminates the risk that they will not receive the
appropriate payment for the goods that they are selling.
Bank Guarantees are issued for a variety of purposes, such as to improve the credit
ratings for issuers of industrial development revenue bonds and commercial
papers; to provide back-up facilities for loans granted by third parties; to
assure performance under construction and employment contracts; and to ensure
the account party satisfies financial obligations payable to major suppliers.
Types of Bank Guarantee:
Performance Guarantee / Bond – PG/PB
Advance Payment Guarantee – APG
Tender Bond Guarantee – TBG
Guarantee/ Bond or Surety Bond is a financial tool that act as
guarantee to secure any claim by the buyer to the seller in case of default in
delivery or performance for supplying huge commodities as per the contract
commonly used in the construction and development of properties, where an owner
or investor may require the developer to assure that contractors procure such
bonds in order to guarantee that the value of the work will not be lost in the
case of an unfortunate event (such as insolvency of the contractor, etc.). In
other cases a performance bond may be requested to be issued in other large
contracts besides civil construction projects.
Obtaining Performance Bond and Guarantees from traditional
sources is sometimes difficult, time-consuming and ties up working capital. Provider
/ Lender understands
these problems and provides performance bond and guarantees as simple as
possible, often without the need to tie up valuable cash resources and always
as fast and as efficiently as possible.
Bond Guarantee (Bid
Bond) is used when a buyer or developer is obtaining tender for a contract and
requires a bond as security against the risk of the successful bidder failing
to enter into the contract.
Bond Guarantee is
very important if you want your company to become competitive in the
construction industry. In fact, in some localities, a Tender Bond Guarantee is
required so you can obtain licenses and permits. Most importantly, almost all
project owners and developers will require a bond from you before you can bid
on their projects.
want to obtain juicy contracts from importers or principal developer to ensure
that buyers or project owners will trust your company, then you need to secure
Tender Bond Guarantee. You can obtain such Tender Bond Guarantee from Provider / Lender very easily.
Payment Guarantee is
used when a developer makes an advance payment to a contractor and obtains a
bank guarantee as security against that payment. The guarantee is payable on
demand and contains optional wording for the value of the guarantee to reduce
as interim payments are made under the contract.
In trading markets, to secure any claims by the buyer on the
seller for reimbursement of the buyer’s advance payment on the contract price
before delivery of the goods (or advance payment of the full contract price) in
the event that the seller has failed to meet their contractual delivery
obligations in full.
Payment Guarantee not
only enables the exporter to receive advance payment of the last term of the
contract but the importer to be covered in the event of a problem during that
/ Lender provides Advance
Payment Guarantee on
behalf of the supplier/contractor which enables them to acquire the advance
payment as per their contracts.
Types of Bank Guarantee:
are in the middle of an important trade deal and need a Bank
Comfort Letter, or what some traders refer to as BCL
(MT -799) or Bank
Commitment Letter, Provider / Lender. can help you. We can provide a
notification to suppliers on your behalf to show your financial capability to
purchase goods/commodities as per the signed contract.
Comfort Letter is a written undertaking by a bank on behalf of its client that
assures the financial stability of the client’s company who has entered into a
contract. Usually, it is used by the importer/buyer for the exporter/supplier as a surety that the buyer is capable
of maintaining their financial commitment within a specified time period.
suppliers of international trade wants to make sure that they are working with
financially competent importers & exporters they can trust when engaging in trade
deals involving large quantities of merchandise and commodities. Thus, to
ensure the validity of a deal, a supplier may request a BCL. That’s how the
comfort level between the buyer and the suppliers firms; by presentingBCL, buyer shows his
fiscal affluence so that the transaction could be executed.
no means is a payment assurance by bank; BCL is an authenticated Swift message
from the buyer’s bank that asserts the buyer’s track record in terms of their
Provider / Lender.
has decades of trading experience and understands the challenges importers
& exporters face when obtaining buyer credit for large amounts of
Our trade finance services have a step-by-step system in place to
ensure you have the proper paperwork in order to satisfy your supplier and
carry out your trade deal. You can review the visual diagram associated with
our process by clicking the “Bank Comfort Letter Procedure” tab, or you can
watch our Bank Comfort Letter “video” for visual understanding.
direct trade finance provider, Provider / Lender. has
competitive rates and terms to provide you with the effective solution to grow