Trade Finance
products are specialized bank products designed to reduce the risks and
uncertainties associated with commercial transactions, thus, facilitating
trade. To compete successfully in the ever-expanding international trade arena,
which requires the financial ability to minimize the buyer's cost, maximize the
seller's offer, and manage the commercial, political and currency risks on both
sides.
Trade Finance |
Our
team of trade experts regularly interacts with customers to update them on
latest developments in the field of Trade
Finance. We have a specialized team to structure trade finance deals
specifically suited to the requirements of the customers. Our structured trade
suite includes prepayment/pre-export finance, back-to-back letters of credit,
invoice financing, facilities for intermediaries and Export Credit Agency (ECA)
Financing. Customers will be able to take advantage of our experienced
structured Trade Finance team,
across product, industry and geographical diversities to mitigate their risk in
trade finance, raise finances at competitive rates and lower transaction costs.
Structured
Trade Finance (STF) is a specialized activity dedicated to the financing of
high value commodity flows. Structured Trade Finance
transactions are structured around the supply chain and commercial terms of
customers, usually involving large bilateral strategic relationships. STF
techniques are used largely in the commodity sector by producers, processors,
traders and industrial end-users, and include:
v
Warehouse financing (finance of commodity
inventories)
v
Borrowing base financing (finance of working
capital assets on a revolving basis)
v
Tolling/processing (finance the conversion or
processing of raw commodities into value added products)
v
Pre-export (prepayment) finance (medium to
longer term requirements)
v
Reserve based lending.
Each
financing arrangement is tailored to the particular needs of the client.
Repayment of Structured Trade Finance
transactions is made through the sale/export proceeds of the commodity and can
be used to finance short term working capital or long term capital expenditure
up to five years.
Structured Trade Finance Benefits
for the customer include:
v
Securing strategic procurement
v
Diversification of funding
v
Greater access to finance for clients
v
Enhanced management of transport costs and/or
delivery time frames.
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