Indebank has in depth strength in foreign trade services dating back to 1972. Our staff have high level expertise and will provide you with structured solutions to suit your business needs.
At Indebank Trade Finance, you will be thoroughly assisted in all trade activities including:
Bills for Collection, Letters of Credit and Guarantees.
BILLS FOR COLLECTION
Bills for Collection facilitate the way you make international trade payments.
When the exporter sends goods to the importer, the exporter instructs his bank to send the shipping documents to the importer's bank, along with instructions about collecting payment. The Bank acts on behalf of the exporter's bank to collect payment from the importer, or a promise that the importer will pay at a later date agreed with the exporter. Under the agreement, the Bank will not release the shipping documents until payment or acceptance has been made.
Benefits
Importer:
* Importers have time to inspect the documents before paying/accepting.
Exporter:
* Documents of value, i.e. title documents, are not released to the importer until payment or acceptance.
* Once the bill is accepted by the importer, the exporter has legal remedy in case of non-payment on maturity date.
LETTERS OF CREDIT
A Letter of Credit is another means of facilitating international trade payments.
This instrument gives more comfort to the exporter as the importer's bank (Indebank) essentially "steps into the shoes" of the importer by way of guaranteeing payment to the exporter. The importer's bank gives a commitment to the exporter that it will make payment upon presentation of pre-agreed, specified sets of documents to the Bank.
Benefits
* The importer can be confident that that the goods they have ordered will be as specified in the contract, and delivered at the agreed time and place.
* Since payment is guaranteed by the importer's bank, the importer can have extra bargaining power to negotiate a price discount on the imported goods as there is no risk of late payment
* The buyer does not have to pay cash up front to a foreign country before receiving the documents of title to the goods purchased. This is helpful when the buyer is unfamiliar with foreign suppliers and legalities.
