1. Trade Finance in the shape of LC Confirmation / LC Discounting / Suppliers Credit / Buyers Credit is a facility available for all clients who are importing goods in most countries.
  2. It is a facility where goods have to be custom cleared in Importers Country which means that the importer has to submit a valid Bill Of Entry / Proof of Imports to their Bankers once the goods have been imported.
  3. The goods imported are of two categories i.e. Capital Goods / Non Capital Goods.
  4. For Capital Goods, the Banks have a mandate to avail Trade Finance from 1 Year to upto 3 Years from the date of Bill of Lading / Airway Bill (as per country Policies).
  5. For Non Capital Goods, The trade finance can be availed from 90 to 360 days and the number of days will be calculated from the date of Bill of Lading / Airway Bill.
  6. Most Trade Finance Transactions are undertaken for imports made against issuance of LC.