Any large enterprise faces the need to develop and modernize its production. However, own funds are not always sufficient for such a large-scale event, and credit conditions in most banks include high interest rates and short-term provision of services. The best that can be offered in this case is trade financing in Gazbank.
Trade financing means providing the enterprise with a delay of payment/payment by installments under a foreign trade contract, using uncovered credit lines provided by foreign banks. When making payments within the framework of trade financing, a letter of credit is used.
Trade financing provides for making payments under a letter of credit at the expense of a foreign bank with a subsequent reimbursement of the amount of the letter of credit by the enterprise with payment of interest for a delay of payment/payment by installments.
Trade financing is necessary for:
- Enterprises, planning to upgrade fixed assets or open new production by purchasing imported equipment;
- Enterprises-importers of different kinds of goods and equipment;
- Enterprises-exporters of different kinds of goods, raw materials and equipment.
Advantages and benefits of financing:
- Reduction of credit, country, legal and other types of risk in foreign trade transactions by using a letter of credit;
- Availability of financing for current foreign trade transactions and long-term projects;
- Availability of a delay in payment/payment by installments in foreign trade transactions from 1 month to 5-7 years;
- Rates for trade financing are on the average lower than rates for classic lending.
The existing correspondent network of the bank allows to open a letter of credit or set a guarantee in favor of a supplier, located anywhere in the world.
Consulting customers at all stages of a trade transaction:
- Organization of meetings and conduction of preliminary negotiations: general consultation and consultation on a specific foreign trade transaction;
- Analysis of a contract or its preliminary conditions;
- Recommendations for conducting a foreign trade transaction;
- Definition of trading and financial instruments, a combination of instruments;
- Definition of the most attractive financing schemes;
- Recommendations on foreign exchange control.
An individual financing scheme, if necessary, with lending elements is developed for each customer, so that it is not required to divert own funds from turnover.
What you need to do to obtain trade financing:
- submit a draft foreign trade contract to the bank;
- the amount of financing should not exceed the amount of the commodity transaction;
- to draw up and submit a preliminary application for trade financing to the bank.
The bank will make a positive decision on financing the transaction, if the enterprise meets the following requirements:
- availability of current sources of repayment of the amount of the letter of credit, interest and costs associated with trade financing;
- availability of collateral – property, guarantee, other forms of collateral acceptable to the bank before the delivery of goods under the foreign trade contract.