Trade Finance

When the world of finance is discussed, one important aspect – and sometimes the most overlooked – is trade finance. It enables traders to import and export all manner of goods quickly and efficiently, without sacrificing quality. Rather than consider this to be an afterthought, we at Credit Investment Bank decided it was time for businesses across the globe to give it a second look. We offer short-term and long-term trade financing through trusted investors with flexible terms that are customized for each company’s specific needs. In short, we provide the following services:
  1. – Export Financing
  2. – Factoring/Receivables Funding
  3. – Import Financing
  4. – Export Financing
  5. – Working Capital Financing
  6. – Guarantees, Letter of Credit (L/Cs) & Standby L/Cs
We also provide facilities against Trade instruments such as Bank Guarantees and SBLCs. We will be pleased to help with your specific needs. For more information on how we can help your company grow, contact us today! We also provide facilities against Trade instruments such as Bank Guarantees and SBLCs.

Letter of Credit

A letter of credit is a document issued by a bank to its client (importer or exporter), which indicates that the issuing bank will honour and pay a specified amount on demand for certain documents (such as export or import documents, or other documents related to the goods being exported or imported) when presented to the issuing bank. The letter of credit usually specifies payment conditions, such as amount, currency, expiry date, etc., and may specify the banking services that are required to be performed. It is by far a universally recognized instrument in international trade. It can be used for imports and exports but it is more frequently used in international importing transactions.

Standby LC

SBLC is a bank guarantee in LC format. As banks in US were not allowed to issue guarantees, US banks as an alternative, amended the format of guarantee slightly to adopt to a Letter of Credit.

Letter of Commitment

Commitment letters are contracts obtained by borrowers to assure the availability of financing from a lead lender. Borrowers may need commitment.

Documentary Collection

A Documentary Collection is the collection of a sum of money due from a buyer to a bank against delivery of shipping documents.

Factoring and Invoice Discounting

Financial factoring refers to an arrangement where the supplier sells his receivables in the form of invoice to the factor, who makes an advance payment of 60-85% of the receivable amount. Invoice discounting companies raise funds by selling these invoices back at a pre-established interest rate to investors, which are typically individuals or institutions. Invoice discounting is a type of financing that allows buyers to create their own loans by using the value of goods they have purchased as collateral. Invoice discounting allows businesses, who may otherwise be unable to obtain loans due to poor credit histories or high transaction fees, to access lending in order to finance inventory. This gives them enough cash flow for the interim period before they receive payment from their buyer customer in order to pay off the loan and still maintain a profit margin.