GTBank Trade Finance
GTBank Trade Finance products cater for the Export and Import clients. Our Relationship Managers who are in direct contact with customers provide solutions to meet our customer needs.
Served by seasoned personnel in Trade Finance, a variety of products are offered by the department, ably assisted by SWIFT and Treasury, equipped with Reuters on-line trading (Foreign Exchange Dealing Room). We additionally have correspondents in all major financial centres of the world.
Letters of Credit
A Letter of Credit facility allows importers to offer secure payment terms to their suppliers overseas, while simultaneously ensuring the prompt delivery of the goods and services they require. We offer our import clients the facility of opening both confirmed and unconfirmed Letters of Credit depending upon their need. We also arrange for confirmation of Letters of Credit by a range of world-class international banking institutions.
Import Letters of Credit Services
The Documentary Collections service offers exporters both security and comfort, since GTBank Trade Finance products takes care of all their document-handling needs on behalf of both export and import clients.
Export Letters of Credit Services
GTBank advises and confirms Export Letters of Credit helping exporters mitigate the risks associated with exporting to a new importing country or to new importers.
The Documentary Collections service offers exporters both security and comfort, since GTBank takes care of all their document-handling needs on behalf of both export and import clients.
Documentary Import Collections
Documentary Import Collections are payment mechanisms, less expensive than Letters of Credit but provide more security to the supplier than open account transactions. Import Documentary Collections boost trading relationships by reassuring suppliers of their payment and safeguards the importer’s title to goods. The two most common conditions for release are:
- Documents against payment (D/P): documents released only if the importer makes immediate payment.
- Documents against acceptance (D/A): documents released only if the importer accepts the accompanying draft thereby incurring an obligation to pay at a specified future date
Export Documentary Collections
Export Documentary Collections simplify the process of receiving payments from importers while also safeguarding the supplier’s title to the goods until payment has been received or documents have been accepted for payment.
GT Bank through this service handles collections upon such financial documents as cheques, promissory notes, and bills of exchange.
Negotiation of Export Bills
This service allows GTBank to negotiate certain forms of export documentation on behalf of its clients, thus making it easier and faster for the client to realize the proceeds of the documentation (usually immediately upon submission of the documentation at the Bank). Once the documentation is received by GTBank, it is forwarded to the importer’s bank, from where funds will be collected at a later date. This product has been priced attractively with the interests of our clients in mind. This service helps exporters who wish to receive immediate value for goods shipped under a Letter of Credit or Collection. The customer also gets to avoid the delays associated with cross-border presentation, mitigates cross-border and foreign bank risks.
Bill Avalisation Service
Bill Avalisation is the bank’s undertaking on behalf of the importer, to honour, payments of Bills of Exchange from the supplier. This undertaking is similar to that of a Letter of Credit and hence provides the same comfort to the supplier but with an easier structure for the importer. This is applicable to both domestic and international trade. GTBank receives import documents with a draft drawn on the Importer. Upon acceptance, we guarantee the draft, release import documents to the importer and forward the draft to the supplier’s bank, thus enabling fast access to funds by the supplier.
Supplier’s Credit Financing
The GTBank Trade Finance solution involves inter-mediating trade flows between exporters and importers by paying the exporters at sight or at an agreed date. The Importer may be able to negotiate a lower purchase price and transactions can be re-structured as trade payables instead of short-term bank debt.
The service helps importers who wish to match cash outflows with receivables. GTBank can arrange post import finance to pay-off import obligations allowing the importer concentrate on making sales to meet the re-scheduled settlement date(s).
A bank guarantee is an instrument issued at the request of the bank’s client (applicant) to a beneficiary (local / overseas) who requires the bank to guarantee / ensure fulfillment of contracts. For such requirements, GTBank can avail at the most competitive terms, tender guarantees (bid bonds), performance and payment guarantees, customs guarantees, etc.
Please contact the Customer Service points at any of our branches for this and more.