Trade - Point Bank

Trade Solutions

With over a decade of experience supporting clients in International Trade, we offer expert solutions to help mitigate risk, ensure security and maximize working capital. Our team of experts open the possibility for your business to trade in new markets with confidence.

Our solutions to Documentary Letters of Credit makes entering into a relationship with buyers or suppliers in emerging markets safe, ensuring that both parties’ obligations are followed through with confidence.

Our team of experts open the possibility for your business to trade in new markets with confidence. Our solutions to Documentary Letters of Credit makes entering into a relationship with buyers or suppliers in emerging markets safe, ensuring that both parties’ obligations are followed through with confidence.

With over a decade of experience supporting clients in International Trade, we offer expert solutions to help mitigate risk, ensure security and maximize working capital.


Documentary Letters of Credit

A Documentary Letters of Credit is the center of international trade transactions, where the buyer and seller have yet to establish a strong relationship and/or operate on an international level.

When concluding a transaction with a buyer from a different country, the seller is exposed to risks due to the physical distance between the two parties, foreign or unknown legal systems, and lack of knowledge about the buyer. The seller may be hesitant to enter such a risk-sensitive deal without a letter of credit as added financial security.

Types of Documentary Letters of Credit:

  • Documentary Letter of Credit or DLC (Letter of Credit or LC)
  • Usance Letter of Credit or Deferred Letter of Credit
  • Export Letter of Credit
  • Packing Credit


Guarantees

In a competitive marketplace, credibility is key.

Financial Guarantees facilitate financial transactions by introducing a trusted third-party, typically a financier or financial institution assuring people worldwide of your authenticity, ability and capability. By demonstrating your financial credibility, financial Guarantee solutions will help open more opportunities for your business.

Types of Guarantees:

  • Letter of Guarantee
  • Standby Letter of Guarantee or SBLC
  • Tender Guarantee
  • Performance Guarantee or Performance Bond

Other financial instruments which are sometimes used as part of a financial trade transaction can include the following:

  • Proof of Funds
  • Ready, Willing and Able or RWA

Speak with one of our Business Development professionals and get the advice you need.


Trade Process

A Documentary Letter of Credit is a world standard financial solution to international trade, where rules and terms of engagement have been developed to bridge the trust and credibility gap between buyers and sellers.

These financial instruments relate directly to the arranged transaction between the Beneficiary and the Applicant. Both parties’ obligations are defined within the Documentary Letter of Credit ensuring the responsibilities therein are fulfilled.

When an applicant utilizes a Documentary letter of credit, this opens up capital that would usually be tied up with the beneficiary in the form of a security deposit or with a traditional financial institution. Because of this capacity to boost the applicant’s cash flow, Documentary letters of credits are an essential part of global trade.

The Uniform Customs and Practice for Documentary Credits (UCP) lays the lawful system for all DLC’s. The present variant is UCP600, effective from July 1st, 2007.