Microcreditbank provides services for financing the import of goods and services using documentary letters of credit through credit lines provided by foreign financial institutions in order to provide more convenience to its customers.
Trade finance is an opportunity to defer payment under client agreements with bank funds or funds of foreign financial organizations on easier terms than with standard lending.
When financing import contracts, the use of a letter of credit, which is a cheaper and more profitable type of financing than traditional loans, reduces both the cost of attracted resources and commercial risk.
A documentary letter of credit is a written obligation of the bank to make payment to the exporter-seller at a certain time, on the basis of the order of the importer-buyer, after the exporter submits the documents specified in the terms of the letter of credit. Payment through a letter of credit can be made upon presentation of documents by the seller, as well as in a delayed period based on the conditions specified in the letter of credit.
Basic conditions for granting financing:
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provides financing in the form of deferred payment under an import contract;
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the minimum amount of financing is not less than 50,000 (fifty thousand) US dollars;
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maximum financing period - up to 3 years from the date of opening a letter of credit, depending on the type of imported goods, up to 1 year - for materials and goods used for the production cycle or resale, up to 3 years - for equipment;
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The term of financing and the interest rate are determined depending on the conditions of a particular transaction and the risk of the bank;
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The letter of credit is approved and executed by a first category foreign bank;
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The exporter receives 100% payment subject to the shipment of goods / services, which allows to reduce the price of the agreement (contract).
Benefits of using trade finance:
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Ease and low cost of financing for attracting resources on the international capital market compared to traditional lending;
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Working capital savings;
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Conduct safe international trade (providing a guarantee of fulfillment of obligations under foreign trade agreements).
