Gurantee or Bond

If your customers are concerned about the credit risks (such as non-payment, non-delivery of goods, warranty, etc.), what can you do?

We can arrange different types of Guarantees or Bonds to suit your needs. A guarantee or bond states that you will comply with the terms of the contract/agreement with your customers, otherwise your customers will be compensated.

Four types of Guarantee or Bond:

• Bid Bond
• Performance Bond
• Advance Payment Guarantee or Down Payment Guarantee
• Payment Guarantee

Standby Letter of Credit

What is a Standby Letter of Credit?

Whether for yourself or your business, a Standby Letter of Credit can be used to secure a variety of transactions where a third-party guarantee of payment may replace a cash or bond deposit. It’s a strategically smart way to leverage the credit power of your portfolio. A Standby L/C is a guarantee to the beneficiary against defaults by the applicant in the performance of his commitment. It is often used in lieu of a performance guarantee; for example, to help another company obtain credit. For more information contact us.

Foreign Exchange Risk Management

How do you minimize foreign exchange risks?

One of the uncertainties of international trade lies in the fluctuating exchange rates between currencies. If you are not properly protected, foreign currency fluctuations can lead to great loss. To help mitigate your foreign exchange risks, we offer you Spot / Forward Foreign Exchange services.

How it works

Exchange rate volatility can affect your bottom line profit in different ways. If you have committed to either selling or buying goods or services in a foreign currency and the exchange rate fluctuates, your overall profit from a particular deal can fall, or in low margin deals be wiped out. Even if you are trading overseas in sterling, you are still exposing your deal to risk by transferring exchange risk to your trading partner. This can make it less attractive for overseas customers to deal with you.

Who can benefit

You can benefit, if you are:

• an importer / an exporter
• engaged in cross border trade
• the owner of overseas assets, joint ventures or partnerships
• competing with overseas companies.

We will develop a four point plan to help you: 

• understand your exposures
• understand the solutions
• develop a strategy
• Implement your plan.

Are you interested? Please call us today.

Invoice Finance / Factoring

With the growing trend to use open account terms, instead of L/C, as a settlement method for international trade, OTF offers a flexible solution for suppliers who are eager to build favourable relationship with their customers.

Overseas Trade Finance arranging one-stop Factoring Services to meet your accounts receivable needs. Subject to a pre-agreed percentage of the approved invoice value, you can turn your accounts receivable into cash, without providing additional collaterals.

Factoring also provides the following benefits:

Credit Risk Protection
We provide you with 100% credit risk protection for sales covered by an agreed credit line, when the buyer goes bankrupt, closes business or fails to effect payment.

Collection Services
Our correspondent will remind your buyers to pay on time, thus reducing your burden of debt collection.

Flexible Financing
In addition to your existing banking facilities, we provide you with another source of financing to facilitate your cash flows.