Trade and Working Capital Solutions
Our trade and working capital solutions are carefully tailored to fit the specific requirements of your business and its intrinsic working capital cycle.
With our industry focused approach, our experienced Corporate Relationship Managers ensure to take the time to fully understand your business needs and are committed to guide you with the right set of solutions to support your business growth.
Our trade and working capital solutions include:
Trade Services
Outward / Import Letter of credit (ILC)
A trade finance product under which CBI provides an irrevocable undertaking to make payments to the exporter (beneficiary) within a specific time period subject to compliant presentation of shipping documents as per documentary credit terms and conditions covering delivery of goods or rendering of services.
Inward / Export Letter of Credit (ELC)
CBI can advise letters of credit received in your favour from your customers (both local & international) after verifying the authenticity of the LC instrument and advise the same for submission of stipulated documents post shipment within LC terms and conditions. This instrument can be used for financing and gives you a competitive edge with your buyers without worrying about the credit period under LC (if any).
· Confirmation: CBI may add its confirmation to the export letter of credit received which provides the beneficiary a definite payment undertaking, in addition to that of the issuing bank, to honour or negotiate a complying presentation thereby providing additional payment assurance.
· Negotiation: Advance provided against value of documents that are compliant with LC terms & conditions before or after the acceptance from the LC issuing bank.
· Transferrable Export Letter of Credit: Facility under which the first beneficiary of Transferable Export Letter of Credit may request to make the letter of credit available, to one or more second beneficiary (ies), who would be the ultimate supplier of goods.
Letters of Guarantees
An irrevocable undertaking from CBI to make payment on presentation of the complying demand to the beneficiary, if the applicant (our customer) fails to fulfil their contractual obligations as agreed with the beneficiary. We are able to issue various types of guarantees including:
· Bid Bond
· Advance Payment Bond
· Performance Bond
Documentaries Collections
Handle documents on behalf of our clients, either exporter (drawer) or importer (drawee), and act as an agent on the transaction respectively. We handle:
Export Documentary Collections
Submit export documents for collections and collect payments under export sales.
Import Documentary Collections (DA / DP / Avalisation)
Deliver documents and remit payments under imports for purchases.
Trade Financing Solutions
· Advance Payment Financing
Funded credit facility extended to companies to finance advance payment to be made to acceptable suppliers for securing purchases of raw material.
· Import Trade Loan / Trust Receipt Finance
A funded credit facility under approved credit line for companies financing their purchases under LCs, documentary collections & open account transactions. The facility helps in improving working capital cycle by bridging the gap between payment obligations and sales receivables.
· Invoice Discounting
Financing customer receivables with recourse under their open account transactions with reputed buyers to improve cashflow and optimise working capital to meet company obligations.
· Factoring (With Recourse)
A comprehensive receivable management solution under which customer receivables due from reputed buyers for their open account transactions are financed on a “with recourse basis”, along with additional services provided including sales ledger management, debtor follow up, credit protection (if opted for).
· Post Dated Cheque Discounting
Local AED currency cheques issued in UAE in favour of our customers are financed under a funded credit facility which will help to improve your working capital by reducing your cash conversion cycle to meet business needs.
Structured Solutions
Back-to-Back LCs
Facility under credit limits sanctioned under which CBI would be able to handle back-to-back trade transactions where, against the prior receipt of an export / Inward LC, a supporting outward / import LC is issued with the underlying terms of both LCs made to mirror each other. This is an alternative mechanism to that offered by a transferrable letter of credit.
Standby Letter of Credit
A standby LC is an instrument (similar to bonds or guarantees) which provides a separate irrevocable payment undertaking to the beneficiary if the applicant defaults on payment
Supply Chain Financing
Program based lending extended to vendors of select large corporates for availing early payments on accepted invoices / receivables assigned to CBI.
Shipping Finance
CBI offers wide range of services to companies involved in the shipping industry with structured financing solutions.
