Our dynamic Trade Finance team brings together proactive trade product specialists, sales and operations staff who are readily available to guide and assist you to make informed business decisions on matters of both international and local trade finance. We provide both generic and specialised products to suit your individual corporate requirements. A brief description of some of our trade solutions are shown below:
Import Letters of Credit
Your overseas or local supplier may require you to provide an irrevocable letter of credit in his favour to secure a trade finance transaction. A letter of credit provides a commitment from the issuing bank to pay the supplier contingent on compliance of the Terms & Conditions of the letter of credit:
- Our network of branches and correspondent banks across the globe enable us issue Letters of Credit to beneficiaries in virtually all countries worldwide and in all freely convertible currencies.
- Our Trade Sales and Operations team provide expertise to guide you on issuance of the letter of credit.
- We maintain high levels of service and once you have completed the letter of credit issuance requirements, the letter of credit is transmitted vide authentic swift (or other authentic modes) to our correspondent to be generally delivered to the beneficiary’s bankers (advising bank) within 24 to 48 hours of our receipt of your application.
Revolving Letters of Credit
Revolving letters of credit are useful for buyers and sellers who have a long standing trading relationship. They involve our conditional undertaking to reinstate a letter of credit either after the occurrence of a specific event or after a specific time period has lapsed.
- Automatically reinstate instruments without reducing any further amendments.
- Number of re-instatements to be agreed upon and specified in the documentary credit.
Standby Letters of Credit
Standby letters of credit are irrevocable and payable on demand.
- Conditional undertaking on behalf of the importer to the beneficiary.
- Settlement on behalf of the importer upon the presentation of specific documents by the beneficiary required under the credit.
Import Letter of Credit Refinancing
This is usually applicable in instances where sight LCs or usance LCs are opened by us, wherein we can finance the settlement under LC.
- Settlement of both sight and usance import letters of credit.
- Refinance locally usually up to 180 days. Longer tenors can be exceptionally considered.
- Flexibility to manage your cash-flows.
- Refinancing of other bank LCs subject to our Terms and Conditions.
Import Documentary Collections
Under documentary collections, your overseas suppliers present trade finance documentation to their bankers, which are then forwarded to us to facilitate the collection of the proceeds on the behalf of the presenting bank and / or handle the document as agent for the presenting bank:
- Ensure prompt communication and execution of instructions as required.
- Different forms of financing can be arranged based to facilitate the import contingent on internal Terms & Conditions and internal approvals.
Avalization of Bills of Exchange
An “avalized” bill substitutes the importer’s risk for the bank’s risk thus, providing the exporter with assurance vide secondary recourse for export proceeds on the avalizing bank:
- Bank commits to pay unconditionally in case the drawee defaults in its payment obligation.
- Bills can subsequently be discounted or used to negotiate better credit terms.
- Assists to enhance the trading relationship with the importer.
- Discounting the availizing import bills provide you additional time to settle the payment obligation.
Trust Receipt Financing
Trust Receipt Loans (TRLs) enable you to avail finance against your imports (under letters of credit, collection or open-account).
- Bank will pay the supplier on your behalf as per the payment obligation.
- Credit period is offered by the bank to settle the Trust Receipt Loan after realising the sale proceeds of the goods or by negotiating the documents under the export letters of credit.
- The loan offered is subject to terms & conditions and internal approvals.
Export Letters of Credit
Given our large global presence, large correspondent network and presence in countries like Africa, we will be your ideal partner to receive your Export LCs from banks overseas.
- Export letters of credit are advised generally within 24 to 48 hours of receipt.
- Bank confirmation can be added upon request.
- Confirmation eliminates the risk of default by the buyer, bank risk and country risk and can facilitate access to a wide variety of finance solutions both before and after actual shipment has taken place.
Pre-shipment Finance
Pre-shipment finance by way of short term loans provides access to finance to the exporter before shipment has taken place under a letter of credit.
- Wide range of tailor-made pre-shipment financing solutions that will enable you to fulfill your trade obligations in a timely manner.
- As a general rule, maximum 70% of the value of the export order is financed and proceeds are routed to your specified account the same day.
- Pre-shipment finance is subject to successful credit assessment and presentation of export orders.
Post-shipment Finance
Post-shipment finance provides cheaper access to funds after shipment but before maturity. Such post-shipment:
- Can be done through negotiation/discounting.
- Serves to enhance your cash-flow position and focus on the core business.
- Fulfilment of all Terms and Conditions under the credit, including presentation of credit compliant documents is required.
Transferable Letters of Credit
Transferable letters of credit can be transferred from the first beneficiary to one or more additional beneficiaries by the transferring bank.
- Issue/Advise transferable letters of credit on behalf of and in favour of our customers.
- Given the risks inherent in these instruments, our trade specialists are available to further discuss the implications, Terms and Conditions under this type of letters of credit.
Guarantees/Bonds and Indemnities
The main types of guarantees/bonds that we provide are bid bonds, performance guarantees, custom bonds, advance payment guarantees, retention money guarantees, shipping guarantees and maintenance guarantees applicable in different circumstances. If you require to issue guarantees overseas, we have a number of branches and correspondent banks spread across number of countries who offer competitive pricing and quality service.
Creditor Prepayments/Supplier Financing
On a case to case basis, we analyze the client's requirement and offer to provide financing at various stages of the supply channel including creditor prepayments prior on or prior to due date of your acceptance / undertaking against Letters of credit and / or collection. These prepayments may be structured on a recourse / non-recourse basis contingent on the transaction
Terms and Conditions.
Invoice/Bill Discounting
Different types of financial and/or commercial documents are exchanged during trade transactions, which provide evidence of a transaction as well as acknowledgement of debt.
- Specialised form of trade financing, which can be availed either with or without recourse to yourselves.
- Dependent on the credit assessment of both parties to the transaction.
- Enhance your cash-flow position.
- Competitively priced.
Our relationship based approach is augmented by products and services especially developed to meet your commercial banking requirements and add value to your business. We can tailor our products to meet your specific requirements. Furthermore, our products are continually enhanced in response to your changing needs and external environments. In addition to looking after your day-to-day banking needs, we can introduce you to trade specialists from within the Barclays Group, as required.
Trade Document Service (TradeDoc)
Trade Document Service covers the value-added in-sourcing service offered by us. This service is intended to:
- Assist you in preparing export documents and executing export trade transactions.
- Provide you with the required technical expertise, convenience and cost-savings.
- Service includes documents prepared under letters of credit, collection and open-account.
Forfeiting
Barclays will purchase trade finance obligations falling due at a future date arising from the sale of goods or services usually without recourse to the seller.
- Transaction based specialised facility.
- Use of negotiable instruments such as bills of exchange and promissory notes guaranteed by a third party, usually a bank.
- Expertise in structuring viable solutions as per trade finance structure.
Factoring / Receivable Services / Selective Invoice Financing
Factoring combines sales-linked finance, bad debt protection, payment collection and transmission services that help businesses to compete with ‘local suppliers’ on equal trading terms. Barclays Bank UAE Factoring Services will provide corporate entities the:
- Potential to help grow their sales.
- Speed up cash flow.
- Collect payment on invoices.
- Protection from the risk of not recovering bad debts.
