What Is The Procedure For Applying Trade Finance Facilities?
Having a million dollars worth deal pending in your hand? Can’t able to precede the deal due to lack of cash flow? Most traders don’t always have a million dollars sitting in their bank account, as they utilized to manage other core businesses. So, to carry out their transaction and to secure their deal, they used to get help from trade finance facilities.
Trade Finance Facilities – Definition
It acts as a complete solution that includes a wide range of financial tools that helps buyers and sellers to conclude their transaction faster and even secure. The instruments mostly include LC MT700, Standby Letter of Credit, Bank Guarantee, Bank Comfort Letter, Bid Bond, Advance Payment Guarantee and Performance Bond Guarantee.
All these instruments specifically crafted to meet the needs and demands of the traders. By availing financial instruments from us, there is no need to worry about the lack of cash funds or lack of bank facilities.
So now, the question that arises is “How to Avail Financial Help from BWT?” Here we have come up with the simple step-by-step process to avail financial instruments from us without collateral. Let us assume that you’re in need of an LC MT700 to secure your transaction. Follow the below steps to avail Letter of Credit MT700 from us.
Letter of Credit Process
Step 1: Submit your requirement to us in the form of a proforma invoice or a Sales Agreement or Contractual Agreement.
Step 2: Next, we will analyze the deal between you and the seller. We will review your deal based on a few criteria and let you know whether we approved your LC request or not.
Step 3: If approved, we will sign a service agreement with you. Along with this, we will also let you know about the admin charges to start work on the transaction.
Step 4: Once you sign the agreement and pay the admin fee, we will start working on your transaction. And we will send the LC or DLC draft for your review. Then, you need to check the LC draft to find whether it complies with all the terms or not. If so, you need to provide your approval by sending the signed draft.
Step 5: After receiving the signed draft, company documents and LC issuance fee; we will request the bank to release the LC. Our bank issues the LC on behalf of the buyer, i.e. you and in favor of the seller via Swift MT700.
With the issued LC, now you’re ready to avail your million dollar worth of goods without the worry of cash flow. The same LC Process applies for availing other financial tools, whether it’s SBLC MT760 or Bank Guarantee.
Get started now to grow your business by availing our financial services! Our services are customized to mitigate risks, reduce financial hurdles & improve cash flow!
Avail Our Trade Finance Services to Grow Your Business
Recent Blog Post
Are you planning to import goods from overseas suppliers? Is your supplier asking for proof of funds from you to verify that you are financially stable to purchase the required goods from them? Are you planning to purchase goods and expand your business without investing your cash funds? Then you can make use of SWIFT […]
As a trader, it’s a must for you to choose the right provider who supports you with your deals in terms of financing. In today’s economy, trade finances play a major role by enhancing global and local import & export transactions. Nowadays, many traders are interested in taking the advantage of financial support to conclude […]
Are you looking for the best solution to take your business to the next level in 2021? Then, making use of Financial Instruments will be the right choice for you! A recent study by WTO states that nearly 80-90% of the world depends on finance solutions for their businesses. Also, it has been predicted that […]