TRADE FINANCE

Guarantee instruments :

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With the support of important investment banks and dedicated to trade finance, The Americas Bancor & Trust, Inc.offers conventional and innovative and structured trade finance solutions aimed at streamlining your international trade flows, improve cash flows and achieve business to be conducted and grow with minimum loss of time and wasted costs.

 

With investments in technology and experienced professionals, The Americas Bancor & Trust, Inc.has built formidable capabilities which are highly considered in the industry. We strive to ensure that you receive timely, informed trade advisory services on financial services we are able to offer for given business, trade sectors, and available opportunities. From procurement to realisation and in addressing all relevant requirements and trade credit services for our client's business .

 

Secure your trade :

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Bank guarantees provide trading partners with security for most parts of a contract and ensure that compensation is paid if the obligated party does not fulfil its contractual obligations. The type and the terms of the guarantee are agreed between the parties of the contract and approved by the issuing bank.

 

Letters of credit :

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Letter of credit means: any arrangement, however, named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour a complying presentation. It not only guarantees product protection but also ensures flexible payment terms.

 

Standby letter of credit (sblc) :

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A standby letter of credit (sblc) is a guarantee that is made by a bank on behalf of a client, which ensures payment will be made even if their client cannot fulfill the payment. It is a payment of last resort from the bank, and ideally, is never meant to be used.

 

Bank guarantee :

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A guarantee means giving something as security. A bank guarantee is when a bank offers surety and guarantees for different business obligations on behalf of their customers within certain regulations. It is generally a promise made by the bank to any third person to undertake the payment risk on behalf of its customers.

 

Documentary collection :

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Documentary collection (dc) occurs when a seller instructs his bank to forward documents related to the exporting of goods or services to the buyer’s bank, then requesting to present these documents to the buyer for their payment. The contract will also include the conditions under which conditions the documents can released to the buyer.

 

Performance guarantee :

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Performance guarantee is an agreement between a client and a contractor. The bank offers a guarantee to the client on behalf of a contractor that work will be done as per the agreement. A performance guarantee is issued by a financial institution or bank to a contractor, to promise completion and the due performance of the works of the service, as described in the contract documents.

 

Proof of funds documents :

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Proof of funds (pof) is a letter or documentation that certifies that an individual, institution, or corporation has sufficient funds (money) to complete a transaction. A pof is typically issued by a commercial bank to provide confidence or assurance to another party – typically a seller – that the individual or entity in question has sufficient funds to complete an agreed-upon purchase.

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Other guarantee instruments :

 

The most common types of bank guarantees contractual guarantees:

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• Payment guarantee : secures the payer’s ability to fulfil its payment obligations to the seller ;

• Bid bond/tender guarantee : secures that the company submitting a bid/tender will abide by its offer ;

• Advance payment guarantee :  secures the buyer a refund of the advance payment if the merchandise is not delivered as per the contract ;

• Performance guarantee :  secures the seller's contractual obligations towards the buyer ;

• Warranty guarantee :  secures the warranty of the goods after delivery, or work completed, during any agreed warranty period ;

• Retention money guarantee :  secures the buyer’s right to repayment of any final payment made, which would otherwise have remained pending until the completion of the contract .

 

Other types of guarantees :

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• Guarantee for a missing bill of lading (letter of indemnity) :  authorises a transport carrier or its agents to release specified cargo to a consignee named in the bill of lading without the surrender of the original bill of lading ;

• Customs guarantee : issued in favour of customs offices as security for payment of customs duties by an importer ;

• Rental guarantee : serves as collateral for rental agreement payments.

• Credit guarantee : serves as collateral for repaying a loan .