Trade Financing
Bridge trade gap with financing instruments such as A letter of credit (LC), Trust Receipt (TR) , Banker’s Guarantee (BG) to effectively reducing payment risk and to free up cash flow for more business opportunities. These financing mechanisms are commonly utilized in Industries such as manufacturing, import/export, retail, and distribution where there are commercial transactions involving the movement or financing of goods.
- A trust receipt (TR) is a form of short-term financing, similar to a promissory note, where a borrower repays a loan to the bank upon selling goods (locally or for export) to their customer.
- A letter of credit (LC) is a guarantee given to the foreign party by the local banker for payment of transactions’ consideration. It is not an instrument whereby the bank pays the amount and then collects it as a trust receipt from the borrower. In international transactions, the parties may not know each other. A letter of credit (LC) is the most commonly utilised instrument in Trade Financing.
Enterprises may apply for the financing, subject to certain eligibility criteria.
Benefits
Letter of Credit
A Letter of Credit (LC) is issued at your request to assure payment to your supplier up to a stated amount, within a prescribed time.
Stronger Ties
Build stronger relationships and support new business opportunities.
On Your Terms
A letter of credit is highly customizable and effective form which enables new trade relationships by reducing the credit risk. Both the trading partners can put in terms and conditions as per their requirements and demands and then arrive at a mutually decided exclusive list of clauses.
Secure
A letter of credit is quick to administer. As per the initial terms and conditions, the seller has to show the proof of material type and quantity along with the documents enhancing his claim that the goods have been shipped. The advising bank will verify and judge the documents before making payment. Bank acts as an independent party between both Buyer and Seller, providing protection.
Why explore Trade Financing through us?
A Team That Will Support You
We have a dedicated team that will walk you through your entire loan origination process and help you do the market research you need. So you can focus your resources on your core business.
Faster Turnaround Time
Due to our familiarity with the origination process. We can reduce processing time substantially.
Higher Approval Rate
Improve your approval chances. We are very familiar with the credit criteria of most banks & lenders with a solid track record of approval rate.
Higher Finance Amount
Maximize your company’s borrowing potential across multiple banks in Singapore.
Within our extensive network of capital providers, we will assemble for you the appropriate financing strategy at the most favourable terms.