As the name indicate, “Global Trade Finance” means financing for international trade transactions. Are you facing a lack of cash flow or lack of bank facilities to conclude your business deal? Then, trade finance is the right option for you! This acts as an umbrella term that includes a wide range of financial instruments such as Import LC, Standby Letter of Credit, and different types of Bank Guarantees
Recent statistics revealed that nearly 80%-90% of traders mainly depend on trade finance for financing their imports and exports. These bank instruments not only help them to conclude their deals but also, helps to mitigate the financial risks involved.
When it comes to import and export, trust is the main factor that acts as a glue between buyers and sellers. If the importer pays the full amount for the goods before it gets delivered, then they may be at greater risk if the received goods are not of good quality & are not delivered as per the agreed contract. Likewise, if an exporter distributes or supplies the goods without getting the payment in advance, then the exporter is taking the risk that the importer or buyer may or may not pay the right amount at the right time. To overcome such financial risks, a Letter of Credit used as the payment term for import deals.
Letter of Credit acts as the payment undertaking issued by a bank upon their client’s request. Import LC issued on behalf of buyers and in favor of sellers assures that the seller will receive the payment for the supplied goods. And also, assures the buyer that their payment will be released by the bank only after the buyer received the goods at their port. By doing so, the financial risks associated with global trade will be mitigated.
Do you require a Letter of Credit, SBLC, or any other bank instruments for your import-export deal? You can get help from us! We, Bronze Wing Trading, the Trade Finance Provider in Dubai support traders who don’t have enough cash funds or credit lines to avail Global Trade Finance from their banks. We extend our credit lines for SMEs to support their global trade dealings. Unlike banks, there is no need for cash margin or collateral to get LC at Sight, SBLC, and Bank Guarantee from us.
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