Trade Finance

Trade Finance

Trade Finance

TRADE FINANCE PRODUCTS

In addition to working capital financing, small and medium enterprises (SMEs) that are involved in domestic and international trade may also apply for related financing from financial institutions.
Some of the common trade financing facilities provided by banks includes:

1.Letter of credit LCs

Usage

For import or local purchases of goods, materials or equipment.

Features

A written undertaking by a financial institution to pay a seller a given amount of money subject to the following conditions:

  • On presentation of specified documents as set out in the terms and conditions of the LC
  • Within a specified time limit
  • At a specified place
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