Your Partner For Development
Taking Your Trade To Greater Heights
BCB’s innovative and customized trade finance solutions make our customers’ buying and selling lot easier. With our wide network both within and outside of Southern Sudan trading will be streamlined getting any national or international trade executed effectively and efficiently. Our dedicated professional teams will be ready to provide our customers with expert advice and swift services from Exports to Imports, Bank Guarantees, Documentary Collection and Documentary Letters of Credit.
We provide following Trade Finance solutions:
Letter of Credit (Import/Export)
Incorporating Confidence in Trading Letter of Credit (LC) or Documentary Credit is the safest and convenient means of paying for exports among all other existing methods of payment. It is widely used to effect payments in domestic and international trade. A written undertaking is issued by a bank (usually referred to as the issuing bank) on the instructions of the buyer of goods to the seller. The payment is made under conditions stated in the undertaking. Payments are always up to a stated limit and against stipulated documents. IMPORT LETTERS OF CREDIT Trading is always risky, even more so if you are dealing with unknown suppliers who demand for pre-payments. With BCB's Import LC, you can be sure that payment will be made when and only when your stipulated terms are fulfilled. We at BCB are dedicated for quality and sleek services understanding customers' requirements and taking care of risks to which our customers are exposed while doing their import transactions. EXPORT LETTERS OF CREDIT To facilitate the needs and requirements of our exporting customers, our team at Trade Operations - Export is committed for delivering unparalleled processing and advisory services. We at BCB are committed to help realize your export proceeds at the earliest possible time through our correspondent banks. Our services range from advising to confirmation and discounting.
Documenytary Collection
Professional Document Collection & Handling When letter of credit is not established but an exporter is willing to ship the goods, the exporter may send the documents on collection basis through their bank to our bank. Our trade services team will handle such documents professionally and promptly. Once the documents are received at our counter, we will immediately inform our customer and upon their retirement of the documents we will remit payment to the exporter.
Bank Gurantee
Providing Assurance To Your Trading Partners On Your Behalf If your business needs safety or liquidity with financial instruments of guarantee, we are ever ready for issuance of the different types of guarantees as outlined below. PERFORMANCE BOND After a contract is awarded to a party, the party needs to perform under the terms and conditions as stipulated by the beneficiary. Beneficiary to protect his interest asks the customer to submit a performance bond issued by a bank. In case the terms and conditions are violated by the customer, the beneficiary will invoke the guarantee and will obtain compensation for his loss. BID BOND Some contracts are awarded through bidding processes. In such bids, participants are demanded to deposit an earnest money or to submit a guarantee letter issued by a bank, which will be used by beneficiary as a security in case of withdrawal by participants when contract is awarded to the participant. Such guarantee is called a bid bond. Such contracts are generally 2-5% of the bidding value as per the requirement of the beneficiary. For issuance of bid bonds, customers need credit line from the bank. COUNTER GUARANTEE For foreign bidders, it is sometimes difficult to have a guarantee issued from a bank in Nepal due to not having credit lines in a bank in Nepal . And in that case, the foreign party will have a guarantee issued from a bank of repute in their own country in favor of Nabil Bank, which in turn will issue a guarantee on behalf of the foreign party. ADVANCE PAYMENT GUARANTEE When a contracting body makes an advance of payment prior to performance of work to help start work and for liquidity of the contractor, they will be exposed to financial risk. To mitigate such risk, they demand beneficiary of the advance payment to submit a guarantee issued by a bank. In case the fund such advanced is abused or the contractor defaults on terms and conditions, beneficiary of the advance payment guarantee will invoke the guarantee and will obtain compensation for their loss. SHIPMENT INDEMNITY Under import LC, if bills of lading and other related documents do not arrive at the issuing bank on time prior to arrival of goods, then shipping company and port authority will not release goods to the buyer. In such situations, to release goods, shipping companies will demand a guarantee issued by a bank. Once the original documents arrive at the LC issuing bank and are submitted to the shipping company, guarantee will be released.
Trade Advances
Offering Financing Solutions for Your Business Needs Tap on our expertise to structure a financing solution that best suits your working capital needs, trade terms and the goods involved to leverage your trading capabilities. Our Trade Advances includes but are not limited to: PRE-SHIPMENT FINANCE Pre-Shipment Advance (or advance before shipment of goods) in the form of packing credit is made available to eligible exporters for the purpose of purchasing, manufacturing, processing, packing and shipping of goods meant for exports against lodging a irrevocable LC established in favor of the exporter through a reputed bank, and a confirmed order/contract placed by the buyer for exports. POST-SHIPMENT FINANCE Post-shipment advance is extended in the form of negotiation / purchase / discount of export bills drawn under letters of credit, confirmed orders / export contracts. The bills are negotiated / purchased / discounted at the Bank's bill buying rate prevailing on the date of negotiation, which is extremely competitive / attractive to the exporter. TRUST RECEIPT/IMPORT LOAN Trust Receipt loan is offered to the importer for a certain limit of the value of import Letter of Credit. It is offered to meet the running requirements from the port of discharge to the warehouse of the importer. To avail this facility, you are required to obtain Letter of Credit and Trust Receipt limit, for which you are required to submit financials of last two to three years, whether audited or provisional and also projections for one year.
