Leasing

Leasing is a product where the bank hires out equipment for a monthly rental.

  • The repayment term is fixed at the time of the disbursement of the loan. 
  • Both principal and interest payments are paid on a monthly basis through a repayment arrangement.
  • The asset being financed remains the property of BancABC until the final repayment.

International Banking 

Asset Based Finance

Pre and Post Shipment Finance

 

Product Pre Shipment Finance

Direct financing to exporters to assist in the manufacturing/processing of export orders. The main objectives behind pre-shipment finance or pre export finance are to enable exporter to:

  • Procure raw materials;
  • Carry out manufacturing process;
  • Provide a secure warehouse for goods and raw materials;
  • Process and pack the goods;
  • Ship the goods to the buyers;
  • Meet other financial cost of the business.

Pre shipment credit is only issued to that exporter who has the export order in his own name. Pre-shipment allows exporters to meet confirmed export orders to reputable overseas buyers.

 

Product Post Shipment Finance

This is short term financing tool which is essentially discounting of an exporter's receivables. Post shipment finance bridges the gap for manufacturers/exporters between the costs expended on production and the receipts from export sales. Benefits to the exporter are as follows:

  • Exporter's working capital cycle is shortened;
  • Allows for increased production levels;
  • Cost effective risk protection against buyer defaults;
  • The Exporter is granted the option to provide greater credit terms to the foreign buyer perhaps even more than international competitors can. This creates a clear competitive advantage.
 

Product Letters Of Credit

A Documentary Letter of Credit is an arrangement for the safe negotiation of a payment and credit transaction, especially in connection with International deliveries of merchandise.

  • A documentary credit covering the merchandise consists of an irrevocable written undertaking on our part to pay, on instructions from the buyer, a certain amount to the seller (beneficiary). We carry this out within a prescribed period and against surrender of stipulated documents covering the shipment of goods contracted between the seller and the buyer.
  • The documents usually involved are bills of landing, insurance documents, and certificate of origin and quality certificates.
  • Letters of Credits help you explore international markets. We have letters of credit to reduce credit risk to sellers in both domestic and international sales arrangements.

By having us issue a letter of credit, you are able to substitute the bank's credit worthiness for that of the customer.

 

Product Bills for Collection

A collection is a payment mechanism available to exporters and importers for settlement of cross border transactions. This service allows documents proving shipment of goods to be sent via BancABC to any other bank in the buyer's country.  The release of the documents to the buyer is dependent on special conditions given by the seller. Collections are classified into Documentary Collection or Clean Collections.

Clean collection - This is an open account payment via a bill of exchange or draft whereby the seller ships the goods then sends the bill of exchange to the buyer. Unlike a documentary collection, the draft/bill of exchange is not accompanied by commercial documents (e.g. invoices, bills of lading, certificate of origin etc)

Documentary Collection- When shipping the goods, the exporter assembles the relevant documents such as invoices and the bill of lading. These are then handed over to the (remitting bank) accompanied by specific instructions to be followed by the banks (both remitting and collecting bank).

The remitting bank then prepares a collection order, which will be sent to the collecting bank. The collecting bank will handle the documents in accordance with the accompanying specific instructions. Since the importer can only access the shipment against the documents, the exporter retains control of the goods as documents are only released under specific instructions; which safeguards the exporter. Thus documents can be released to the importer against payment (D/P) or against acceptance (D/A). Banks, therefore, act as intermediaries to collect payment from the buyer in exchange for the transfer of documents that enable the holder to take possession of the goods though the bank does not act as surety of payment but rather only as collector of funds for documents

 

Product Import

We process international transfers through various ways such as telegraphic transfers and drafts in line with existing regulations.

 

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