Trade for Exporters
At UOB Business Banking, we offer a comprehensive range of solutions to companies engaged in international and domestic trade transactions including Letters of Credit, Documentary Collection, Banker's Guarantee, Standby Letter of Credit and Open Account transactions.
Our Trade Finance services will serve as a bridge to the buying and selling of goods and services across national borders or territories, allowing both the buyer and seller to expand their markets that otherwise may not be made available to them.
Please refer to the following for more information:
- Export Letter of Credit (LC) Confirmation
When you are not comfortable with the credit standing of an LC opening bank or if you are worried about the political climate or credit risk of the buyer's country, a LC confirmation will come in handy. Once confirmation is added to the LC, an applicant would be assured of payment, subject to non-discrepant documents, irrespective of non-payment by LC opening bank.
- Export Letter of Credit Discounting/Negotiation
Export Negotiation is an advance or discount of funds to seller when their cargo has been shipped to the buyer's country and all documents that is called for under the LC has been presented to the bank. The Bank must have a claim on proceeds before advancing to the seller.
Discounting can provide a seller with a form of working capital prior to receiving payment from the issuing bank. However, in the event of default in payment or documents being rejected by the issuing bank, the Bank may seek reimbursement from the seller.
- Banker's Guarantee
A Banker's Guarantee is an undertaking given by the Bank (guarantor) to pay the beneficiary a certain sum of money within a specified period if the applicant (principal) fails to fulfil his contractual or other obligations of an underlying transaction. It is normally used to secure either a financial or performance obligation of the principal.
There are two main types of Banker's Guarantee:
- Performance Bond
- Financial Guarantee
Receive updates on the status of your import and export transactions via UOB eAlerts. Click here for more information on UOB eAlerts.