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Trade Finance
Having an experienced Team of Trade Finance we can help and ensure that your international transactions proceeds faster, easier and trouble free. It would be a great pleasure to be your Trade Partner in your difficulties at all times. We are hoping to help our customers when they in need of finance and our motive is to assist and advice any individual who comes to us. We are not concern whether they are corporate or individual. We devote our valuable time and energy to sort out their problems. Then we identify their need and try to help them after considering the credit worthiness. As this division is a new venture of this Organization we concentrate mainly in three areas. They are:
A. Opening of Letter of Credit on behalf of Customers
B. Local Bill Discounting
C. Trade Loans
Opening of Letter of Credit on behalf of Customers
Benifits for our customers....
- Services geared to support all size of importers
- Elimination of commercial & political risk
- Flexibility and reducing finance cost
Opening of Letter of Credit on behalf of clients have to be considered as our new product line in our business. There is a lot of potential in this type of business and it is very Rewarding. Most clients do not wish to disclose information to Banks and other institutes due to various reasons and they wish to avoid the hassle of going through tedious paper work due to lack of time. Whatever the reason, they prefer a third party to help them out in this matter. The Banks have a set of papers for the opening of L/Cs. A representative from the company has to obtain the necessary documentation and liase with the bank. We co-ordinate the activities of the client and his supplier together with the Bank.
Local Bill Discounting - (cheque purchasing facility)
Short term loan on collateral basis
In this rapidly developing Economy most of the Business Institutions, although they are strong, envisage Cash flow difficulties due to ever expanding Credit Market. This has been well understood by many Financial Institutions operating in Sri Lanka having initiated Cheque discounting facility as a consolation. Hence, Local Bill Discounting has become one of the dominant facilities in their loan/facility portfolio.
Modus Operandi
The Modus Operandi of the facility is as follows:
I After carrying out a feasible study on an prospective client as to their Financial and Business viability, it is suggested that an appropriate LBD Limit is allocated against their deposits of either self cheque or third party cheques received by them during the course of the business. The tenure may originally extend up to one month with an option for a further extention up to 3 to 6 months on justifiable ground on special cases.
II In addition to the above, the interest will be subject to the Government duties such as VAT.
III As for security the facility may be called at collateralized against the followings
Borrower’s self cheque or third party cheques as appropriate. Demand Promissory Note – (DPN) Vehicle - Movable or immovable property
Trade Loans
Trade Loans are provided to corporate or partnership or proprietorship Business enterprises to improve their business.
However, we assess our prospective clients whether they have the capacity or Business turnover to repay the loan. Further, we carryout a thorough investigation about the borrower’s and guarantors’ credit worthiness, liabilities and their honesty in business dealings. Trade Loans are granted on collateral basis favourably movable or immovable properties are considered, with two guarantors, in case, if the borrower is in difficulty, they should be able to repay the loan.
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