With increased cost of borrowing in client’s home countries, we at Hexagon assist Business Houses, in getting Project or Trade Finance, SBLC or L/C discounting from renown local and international commercial and private banks. Thereby benefiting from reduced /preferred cost of funds.
How are Trade Finance Services Helpful in Dubai?
Trade finance is the financial products and instruments used by companies to assist commerce and international trade. Trade finance makes it easier for exporters and importers to transact trade business. It is an umbrella term ‘Trade finance’ that covers several products of companies and banks using to make the practical possibility of trade transactions.
Understanding Trade Finance
The trade finance function is to introduce transactions to third-party and to eliminate the risk of payment and supply. Trade finance gives the exporter payment or receivables as per the agreement and the importer is extended credit to complete the trade order.
Trade financing is much different from any conventional financing. Trade financing indicatesliquidity or lack of funds position of a buyer. Trade finance is used to safeguard against inherent risks of international trade such as political instability, currency fluctuations, creditworthiness, or non-payment issues of parties involved. It means accessing an extensive range of finance and trade services that it is not possible for every business owner to handle these processes. Thus, there is a need to seek Trade Finance Services Dubai. This is because they have the expertise to handle various markets.
The parties that are involved in trade finance are Banks, Insurers, Exporters and Importers, Trade finance companies, Service Providers and Export credit agencies.
What is the different Trade Finance Services?
The different trade finance services include:
- Import credit letters – They issue in favor of suppliers the stand-alone letters of credit.
- Export credit letters- They have a solid reputation that they assure their beneficiaries and also advise regarding credit.
- Payment guarantee- They provide to the beneficiary financial security in case a buyer does not pay.
- Standby credit letters- They mitigate risk payment and support trading open-account.
- Risk participation- Foreign trade exposure management.
Why choose Trade Finance services?
There is a need to choose the service of expert Trade finance as they have extensive knowledge and relationship with global trade partners and correspondent banks. The UAE branches know to bridge the trade corridor easily and can provide perfect guidance, besides technical support.
Trade finance services include enhancing suppliers to your trade relationships. It helps in assisting expanding the business and promoting business relationships. Trade finance services ensure on a daily basis to fulfill customer’s requirements and process trade transactions in an efficient and timely manner.
The services offered by Trade finance services to clients are:
- Trust Receipt Financing
- Overdraft Line
- Cheque Discounting
- Bank Guarantee
- Letter of Credit
- Discounting L/C
- Project financing
- Bank guarantee
- Local bill discounting