Facilitating and Financing Trade Activities

MAKING TRADE FINANCE SIMPLE

The Journey

Sourcing

Let’s have a scenario where you are a supplier of goods and services. You meet up with Business A, John Doe Enterprises and Business B, Jane Doe Enterprises. They’ve just advertised a tender looking for suppliers to supply them with Goods A and B respectively. This process of looking for suppliers is normally referred to as sourcing through tendering or bidding.

Assuring Your Credibility and Capacity

What these two businesses need is an assurance of your credibility and capability to deliver the required goods and/or services. As our customer, we can help you with that. We issue an undertaking to pay Business A/B a specific amount in the event the you have not fulfilled contractual obligations. These solutions include:

  • Bid/Tender Bonds
  • Performance Bonds
  • Payment Guarantees
  • Shipping Guarantees
  • Retention Bonds
  • Advanced Payment Guarantee
  • Export LC’s

Financing the Job

So, after presenting the necessary documents, you are deemed qualified and you win the job to supply the goods. But Eh! You don’t have money! Relax, no need for tension! Credit Bank to the rescue with various financing options:

  • Inventory/Stock Financing
  • Post-shipment Financing
  • Pre-shipment Financing
  • Bill Discounting
  • Invoice Discounting
  • LPO/LSO/Contract Financing

Kaching! Money in, you get to work!

The International Play

So, Goods A that John Doe Enterprises wanted, are available locally. This is easy, just organise the payment and deliver the goods. Goods B, that are available only in the international market, are a whole different story. There’s a whole set of risks involved with sourcing your goods from the international market. Questions abound like, “if I pay the guy on the other end first, will the guy deliver? If the guy delivers, will the goods be up to spec?”

Mitigating the Risks

Well, risk mitigation is part of our day to day activities at Credit Bank. What you need to get Goods B from your international supplier is a go-between that can be trusted. The solutions we provide as a go-between put your mind at ease! Basically, we give your supplier special documents that assure payment if and when the goods they are to supply arrive in order. If everything is in order we release the funds to your supplier.

  • Letter of Credit
  • Back to Back LCs
  • Avalisation
  • Documentary Collection

Get Paid

Finally, you’ve gotten the goods. You can supply them to John Doe Enterprises and/or Jane Doe Enterprises… with some neat profits in between for yourself 😊.

Get a Solution

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