Trade Finance
Trade with confidence, trade finance made easy with Global IME Bank.
Trade with confidence, trade finance made easy with Global IME Bank.
We offer wide range of trade services to our customer to support their trade activities locally and internationally. We support our customer to import and export goods and services to and from third country.
Global IME Bank Offers the below trade products:
Letter of credit is the most commonly used payment method in international trade. It is a financial contract between a bank, its customer and the beneficiary and issued by the importers bank which guarantees the beneficiary that the payment shall be done once all the terms and conditions are fulfilled.
Import Documentary Collection
Document Collection is one of the terms of payment in International trade. It is a process by which the exporter’s bank receives fund in exchange from the importer’s bank in exchange for shipping document. The process involves two main types of collection.
In DAP, the importer must pay the amount due before receiving the shipping documents and taking possession of goods.
In DAA, the importer gives their acceptance to the bank for payment at given maturity and releases the documents.
Import by Advance payment
Under this type of payment, the importer makes the payment for the goods to be imported in advance prior to shipment.
Global IME Bank authenticates and advise LC to the beneficiary. LCs issued by importer’s bank through swift are authenticated by Global IME Bank and advises to the beneficiary.
Export by Advance Payment
Under export by advance payment, an exporter receives an advance payment, partially or fully, prior to making the shipment of merchandise.
Cash against Document (CAD)
Under CAD, the exporter directly forwards the goods and shipping documents to the Importer. Importer makes payment to exporter directly through its bank.
Financing under Trade Finance:
Trust Receipt Loan
Trust Receipt Loan is provided to importer for import of raw materials or goods to manufacture or resell. It is extended for the retirement of documents under Import Letters of Credit or bills under import documentary collection.
Pre-shipment Loan
Pre shipment Loan also known as Packing Credit Loan extended to an exporter to finance the purchase of raw materials, processing, manufacturing and packing of goods prior to shipment. This loan is also provided to meet the exporter’s working capital requirement.
Post-Shipment Loan
Post shipment loan is extended to exporter after the shipment of goods under the Export LC and CAD (cash against document). This is a type of receivable finance that is provided to finance the gap period after the shipment has been made and until the export proceeds is received. Repayment of this Loan is to be done from realization of export proceeds.
A bank guarantee is a promise by a bank to pay beneficiary if applicant fails to fulfill their financial and contractual obligations. We offer different types of bank guarantee as per the requirements of its customer. Some of the commonly issued guarantee are:
Bid Bond (Bid Guarantee or Tender Guarantee)
This type of guarantee is issued by a bank to a beneficiary on behalf and at the request of its customer (Principal) submitting a bid or tender to the beneficiary. It is an agreement guaranteeing the beneficiary that the bidder will enter into the contract if he wins the bid and ensuring compensation if the bidder fails to accept the contract. It is required at the initial stage of inviting Bids/ Quotation/Tender for certain work like Construction/Supply etc.
Performance Bond Guarantee
This type of Guarantees are issued by a bank to a beneficiary on behalf and at the request of its customer (Principal) to whom the contract is awarded by the beneficiary in order to underwrite the contractor’s obligations to complete the project as per the agreement. It is a contractor’s promise to complete the project undertaken. It is required at the second stage after the Bid is accepted and contract is awarded.
Advance Payment Guarantee
An advance payment guarantee is issued where a principal receives money in advance from a beneficiary in order to perform/finance the work as per contract. A bank issues advance payment guarantee to beneficiary on behalf and at the request of its customer (Principal) in order to protect such advance payment made to the principal by the beneficiary. It acts as collateral and protects the beneficiary’s advance payment.
Customs Guarantee /Bonded Warehouse Guarantee
The guarantees issued to the Government of Nepal, Custom Offices for bonded warehouse facility and other purposes are called Custom Guarantee. It is generally issued as security for payment of customs duties by an importer. When goods are entered without payment of customs duty, a customs guarantee is issued.
Suppliers Credit Guarantee:
A suppliers credit guarantees is issued by a bank on behalf and at the request of the customer (Applicant) in order to supply the goods in credit by the Beneficiary to the applicant.
Counter Guarantee:
A guarantee issued by a bank at the request of and against counter guarantees of its correspondent bank(s) on behalf of the principal is called counter guarantee. Such guarantee is issued when principal and beneficiary are from two different countries.
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