Documentary Credit Products and services
Documentary Credits (Sight / Usance)
We issue Documentary Credits (DCs) both on sight and on usance basis to suit our customers’ requirements.
Back to Back Documentary Credit
A Back-to-back Documentary Credit is used by traders, middlemen and buying agents. A Master Documentary Credit is issued by the buyer of our customer. Based on this master, we issue another Documentary Credit, to enable our customer to purchase goods from their suppliers.
Stand-by Documentary Credit
A Standby Documentary Credit (SDC) is generally used to guarantee the performance of any business party. For e.g. our customers may avail credit facilities from us by providing a SDC issued by another bank. An SDC can enable significant transaction cost savings – for e.g. by using a SDC in place of a Documentary Credit, our customers can generate savings, specially in a situation of small and frequent purchases.
We provide Packing Credit facilities to facilitate the import financing requirements of our customers. The Packing Credit facilities that we offer provide an efficient method of bridging the Import working capital requirement of customers. We offer customized financing periods depending on the specific requirements of our customers.
Trust Receipt Loans
This type of loan can be availed by our customers when they are trading under Documentary Credit or Documentary Collection terms. We can release goods to our customers under trust receipts. This means that our customers can process the goods immediately but the goods belong to the bank until the loan is settled.
This financing facility can bridge the gap between payment for imported goods and receipt of funds through subsequent sales, thus giving our customers greater flexibility and liquidity. This ensures that our customers do not miss any business opportunities due to inadequate cash flow.
Such a facility can also help our customers to avail additional credit period beyond those given by their suppliers under Documentary Credits and Documentary Collections.
To satisfy the specific requirements of our customers who wish to import their products on Open Account terms, we provide Invoice Financing facilities. Such facilities are tailored to the customers’ need to carry out their import activities without using a Documentary Credit. In such facilities, we can make advances based on supplier invoices and/or an evidence of shipment.