As we all know, International Trade can sometimes get complicated when it comes to payment. Usually, the seller wants the payment immediately once the deal is closed. On the hand, the buyer always waits until the goods are received before making the payment to the seller. And this is because of the trust issues between the buyer and the seller. That is why global trade market comes up with the idea of trade finance services. There are many Trade Finance Providers who help both the local and global traders to do domestic and international transactions without any hurdles.
Trade Finance Services, as the name implies, the term refers to a wide range of tools that determine how financial instruments can be used for trade. The trade finance services usually includes: Letter of Credit, Standby LC, Bank Guarantee, Performance Bond, Tender Bond, Bank Comfort letter and Advance Payment Guarantee.
All the trade finance services enable the trust between the buyers and sellers; also guarantees the sellers that they will be paid once the certain conditions are met. Also, assures the buyers that they will receive the products, as per the agreed contract. Since trade finance services acts as the assurance for payment and goods, it’s often referred as a Lifeline of Trade. Here in this article, we are going to discuss on the top 5 tips about trade finance services. Keep on reading to know more! Tip #1 – Stay Away From Financial Risks During the early days of trading, many suppliers don’t aware of when the buyer would pay them for their shipped goods. Whilst, the buyers also worried about making prior payments, as they had no guarantee whether the seller will actually ship the goods as per the agreed contract or not. Over time, importers/exporters tend to find ways to reduce the risk of non-payment. Trade Finance has evolved to address all of these risks and find out the best ways to reduce the financial risks of both importers/exporter. Tip #2 – Reduce Pressure on Traders Trade finance services reduce the pressure on both importers/exporters; as, this bridge the financial gap & trust issues between buyers and sellers. By availing trade finance services, a supplier/exporter is no longer needed to afraid of a buyer’s default in payments. And also, a buyer/importer is sure that they will receive all the ordered goods as per the agreed contract. Tip #3 – More Options to Avail Trade Finance Trade finance providers offer a wide range of trade finance instruments that specifically crafted to fit the needs and requirements of various types of businesses and projects. Instruments Include:
Tip #4 – You Will Never Miss a Deal
If you have lucrative deal to import or export a huge quantity of goods pending in your hand, then you can use this trade finance services to conclude your trade deal. And so, even you don’t have enough cash in your account, you can sign a contract and will never miss a deal.
Unlike debt financing and mortgages, availing trade finance services doesn’t decrease your credit score, financial credit worthiness, etc. Rather, having trade finance instruments in hand improves your credit status in global trade market.
These are few of the quick tips on how trade finance services help you and your business to conclude multi-million dollar business in a day! Do you require trade finance services to conclude your trade deal? Contact Bronze Wing Trading L.L.C., trade finance providers in Dubai to avail trade finance facilities such as – LC MT700, SBLC MT760, BCL MT799, or BG MT760 to conclude your trade deals. For more info, submit your requirements to us by send us an email You can also call us at +971-4-5519699 / +971-50-4648761 Comments are closed.
|
Contact Info:
Office 3002, Aspect Tower, Al Mustaqbal Street, Business Bay, Dubai, United Arab Emirates. 00971-4-5519699 [email protected] [email protected] www.bwtradefinance.com www.importletterofcredit.com |