Are you the leading trader of goods such as coffee beans, rice, wheat, etc.? Then, you might be aware of Trade Finances! To be noted that, trade finances have been there for many hundreds of years; also, you can find the roots of trade right back to the early days of the sea route & Silk Road trading. Further, today, as imports and exports of goods have increased; traders are flocking around the banks to get fiscal support for their import and export deals.
Commodity Trade Finance is the method of financing import and export of all kinds of goods – energy (petroleum products, natural gas), metals (iron ore and steel products…); also, agro (rice, wheat, sugar cotton, etc.).
For example: Imagine you are a buyer of rice in Dubai; who buys rice from India. And then, sells it to local buyers. If you have an urgent demand for rice to be imported from India. In this case, where you will find the money to conclude this import? Further, how you will find the right financial support for your deal? Also, how you will secure your imports from trading risks?
This is where Trade Finance comes in! With the use of trade finance services, you can grow your business; without unlocking your cash funds!
With more than 80% of the worlds’ trade depends on trade finance; Bank Instruments play a vital role in imports and exports. Moreover, there are different types of financing options available. Besides, all the below listed are being used mostly by traders; when it comes to global trade.
These Bank Instruments are designed to perform import and export in a safe and secure way; by reducing the risk involved. Meanwhile, here, banks act as a guarantor; which assures the counter parties; that the commitments will be made; without any default.
To get trade finance for your imports, you can contact your bank with your request. And then, if you have enough credit facilities available in your bank; further, if you are ready to provide cash margin; then your bank will help you to get the required instrument.
Unfortunately, amid the global crisis, banks are scaling back from issuing fiscal support for their clients; unless or until fully protected. But on the other hand, since the demand for merchandise is increasing; traders are looking for other options to get financial support from banks; to import goods & earn profits.
If you’re looking to get LC or SBLC or BG to import bulk commodities, contact us today! We can provide Bank Instruments from Good Rated Banks at ZERO Cash Margin in just 48hrs.