al khaliji

Whatever your import or export needs, we will ensure smooth running of all your trade transactions by providing expertise in letters of credit and guarantees. Your relationship manager will put you in touch with our trade finance specialists who will assist you with your importing and exporting activities and offer the right solutions to achieve your trading ambitions.

Having a qualified team of trade finance specialists on your side will ensure that your international transactions proceed quicker, easier and trouble-free. Whether you use documentary credits or collections, you may from time to time need funding to meet your trade commitments. We will work with you to provide the best solutions for your business.

• documentary credit

  An undertaking issued by a bank, on behalf of the importer (buyer), to make payment for goods or services provided by the exporter (seller), within a specified time limit, provided the documentation submitted by the exporter complies with the conditions of the credit.

  An Import Letter of Credit is one issued on the customer’s behalf as the buyer. An Export Letter of Credit is one that the bank has received from another bank in the customer’s favour as the seller.

  A documentary credit provides comfort to the buyer that payment will only be made upon presentation of the required documents.

  Documentary credits are subject to the globally recognised International Chamber of Commerce Uniform Customs and Practice for Letters of Credit.

  Documentary credit are normally irrevocable i.e. a definite undertaking which cannot be revoked without the agreement of all parties.

• documentary collections

  A documentary collection is an alternative to letters of credit or other payment methods, for settling overseas trade debt through the international banking system, allowing the buyer and seller an efficient and protected way to exchange goods and payments, while minimising the risk of loss.

  Collections provide an element of security over open account trading and are simpler and cheaper than Letters of Credit but not as secure as they offer no guarantee of payment.

  Import Collections (often referred to as Inward Bills or Inward Collections) are sent to the bank by the bankers of the overseas seller, in favour of the buyer. The seller maintains control of the goods pending payment or acceptance of debt by the buyer.

  Export Collections (also known as Outward Bills) are sent on your behalf as the seller to the bankers of the overseas buyer. They can enable the seller to maintain control of the goods pending payment or acceptance of the debt by the buyer.

  Collections are subject to the globally recognised rules issued by the International Chamber of Commerce, known as Uniform Rules for Collection.

• guarantees

  A binding commitment provided by the bank to support various commitments and obligations. Guarantees specify an amount of money that will be paid on demand in case of default. Companies are required to provide Bonds and Guarantees that are obligatory under the contractual relationship between the parties involved or are required to satisfy statutory regulations.