Trade Products

Here are brief descriptions of some of our Trade Finance Products.

• IRREVOCABLE LETTER OF CREDIT
  This is an undertaking by a bank, on behalf of an importer to pay the exporter an amount of money within a specified time, provided the exporter presents documents in compliance with the terms of the Irrevocable Letter of Credit.
  
  
• TRANSFERABLE, IRREVOCABLE LETTER OF CREDIT
  This is used generally when the beneficiary of a Letter of Credit is not the actual supplier of the goods, but an intermediary (middleman). A Transferable Letter of Credit is an Irrevocable Letter of Credit with an additional term that allows a named bank to transfer an amount of the Letter of Credit to one or more of the actual suppliers. This transfer is completed at the request of the original beneficiary of the Letter of Credit.
  
  
• IRREVOCABLE, STANDBY LETTER OF CREDIT
  It is similar to a guarantee and is commonly used for trade related products or services. The benefit of a Standby Letter of Credit is that it allows importers and exporters to continue trading up to an agreed figure without the need of presenting documents for each shipment. Documents should only be called upon if there is a payment default.
  
  
• PERFORMANCE BOND / GUARANTEE
  A Performance Bond is designed to ensure that the applicant will perform their obligation in accordance with the terms and conditions of the contract and within the agreed time.
  
  
• TENDER BOND (BID BOND)
  Tender Bonds are designed for companies to tender for contracts and also to deter companies from making a tender and then rejecting the contract when it is awarded to them because they no longer have an interest in the transaction.
  
  
• ADVANCE PAYMENT GUARANTEE
  The basic purpose of an Advance Payment Guarantee is to ensure that in the event of a contract/service not being completed, the Advance Payment Guarantee may be called upon to obtain a refund of the advance payment made at the initial stages of a contract.