Services
Trade Finance
Letters of Credit (LC)
Letters of credit are one of the most common trade finance instruments. In an LC transaction, the importer’s bank guarantees payment to the exporter upon presentation of compliant shipping documents, ensuring that the exporter receives payment as agreed.
Bank Guarantees
Bank guarantees are financial assurances provided by banks to ensure that a buyer or seller fulfills their obligations under a trade transaction. They can take various forms, including performance guarantees, bid bonds, and advance payment guarantees.
Export Financing
Export financing provides funding to exporters to support their international sales. It may include pre-export financing, post-shipment financing, or export factoring, allowing exporters to bridge the gap between production and payment.
Import Financing
Import financing helps importers finance their purchases from overseas suppliers. It may include import loans, trade credit, or documentary collections, enabling importers to manage cash flow and mitigate payment risks.
Supply Chain Finance
Supply chain finance optimizes cash flow along the supply chain by allowing suppliers to receive early payment for their invoices while offering buyers extended payment terms. It enhances liquidity and strengthens relationships between buyers and suppliers.
Documentary Collections
Documentary collections involve the exchange of shipping documents and payment instructions through banks. Unlike letters of credit, banks do not provide payment guarantees in documentary collections, making them less secure but more cost-effective.
Trade finance plays a crucial role in facilitating global trade by mitigating risks, providing liquidity, and enabling businesses to engage in cross-border transactions with confidence. It contributes to economic growth by fostering international commerce and promoting financial stability.
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