NBO offers its Trade Finance Services by partnering with several financial institutions around the world. These services include international project and trade finance, online client accounts, money remittance and SWIFT financial messaging. We also offer:
- Bill Discounting
- Commercial Letters of Credit
- Confirmed Letters of Credit
- Standby Letters of Credit
- Letter of Guarantee
- Revolving Letters of Credit
- Back to Back Letters of Credit
- Bid Bonds (Tender Guarantee)
- Performance Bonds
- Payment Guarantees
Trading or selling a bill of exchange prior to the maturity date at a value less than the par value of the bill is called bill discounting. The amount of the discount will depend on the amount of time left before the bill matures, and on the perceived risk attached to the bill.
Letter of Credit
A letter of credit is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods or services provided certain documents have been presented to the bank. "Letters of Credit" are documents that prove the seller has performed the duties specified by an underlying contract (e.g., the sale of goods contract) and the goods/services have been supplied as agreed. In return for these documents, the beneficiary receives payment from the financial institution that issued the letter. The letter of credit serves as a guarantee to the seller that it will be paid regardless of whether the buyer ultimately pays or not. In this way, the risk that the buyer will fail to pay is transferred from the seller to the letter's issuer. The letter can also be used to ensure that all agreed standards are met by the supplier, provided that these requirements are reflected in the documents described in the letter of credit
Pre Shipment/Post Shipment Finance
Post-Shipment finance is a loan or advance granted by a bank to a seller of goods from India. This facility is available to a seller subsequent to the date of shipment of goods upto the date of realisation of sales proceeds.
Pre-Shipment finance :- any loan to a seller for financing the purchase, processing, manufacturing or packing of goods is called Pre-Shipment Finance.
This facility allows you to receive value of up to a pre-specified amount for cheques lodged into your account. You can either draw against uncleared effects or discount the cheques to use and receive immediate value.
Loan against Trust Receipts
This is a loan against a Trust Receipt provided to the client when the documents covering a purchase shipment are given without payment. Under this system, the client will hold the goods under their sale proceeds in trust for the bank, until the loan allowed against the Trust Receipt is fully paid.