TRADE FINANCE

How We Finance Trade

Financing global trade has a lot of benefits, not only to the lessor, but to whom a lease is granted. As Trade Finance Agency  we help serious commodity traders provide the right payment guarantees, such as BG / SBLC specifically for lease.

The following is a step by step information for commodity traders who may be interested in the service we provide. Our mission is to combine sector knowledge with technological innovation to help clients grow, trade and transact globally and manage their risk.

How We Finance Trade

The actual payment method commonly used is a documentary letter of credit. But some suppliers usually raise concern for failure or neglect to perform as agreed or set by common consent, many sellers may request that the buyer issue a MT-760 BG / SBLC as payment guarantee before delivery of the product commence.

Due to definite course of action adopted for the sake of expediency some bank may not issue MT-760 BG in favor of their customers. Some banks lack desire to issue BG / SBLC, as that makes them legally responsible for the full cost of the trade, which can sometimes equal in value to millions of dollars. Some bank will not issue a BG / SBLC without some form of collateral to protect their interests when business goes wrong. If your bank decline to approve your application to issue a BG /SBLC to a supplier because of insufficient funds on deposit we can help you issue a BG / SBLC to a supplier.

It is a precise direction for managing the capital required for international trade to proceed continuously and smoothly. Yet within this method there are a wide range of tools at the financiers’ disposal, all of which determine how cash, credit, investments and other assets can be utilized for trade.

In it’s normal form, a supplier requires a buyer to prepay for goods shipped. The buyer naturally wants to reduce risk by asking the supplier to document that the goods have been shipped. The buyer’s bank assists by providing a letter of credit to the supplier's bank providing for payment upon presentation of certain documents, such as a bill of lading. The supplier's bank may make a loan to the supplier on the basis of the export contract.

Trade Services And Payment

There are a number of ways in which we can help corporate our clients trade cross-border for a fee. The nature of service we offer to buyer from a bank will include the following details;

Letters of credit, BG/SBLC, import bills for collection, import financing, Proof of funds, LC checking and negotiation, pre-shipment export finance, export bills for collections, invoice financing, and all the relevant document preparation for payment of goods.

We represent large corporates to provide this form of trade finance. It saves costs and time and so has been adopted by traders as they become more comfortable with their supplier relationships. BG / SBLC used as payment guarantee for transactions can be described as (buy now, pay later) and are more like regular payments for a continuing flow of goods rather than specific transactions. It is much cheaper for buyers to trade with leased BG/SBLC we provide for them.

In accordance to the procedures used to provide a BG / SBLC to buyers there will be no consultation fees, no transmission fees or upfront payment until the buyer receive a transmitted BG / SBLC via SWIFT to the receiving bank.