Link Commercial Mortgages
Phone 1300 369 380

Different Types of Trade Finance

Trade Finance facilities are usually extended by way of:

  • Letters of Credit: (LCs) a form of international payment by way of the buyer’s bank guaranteeing that a payment to a supplier is on time and for the correct, subject to the compliance of the terms on the LC. LCs are widely used around the world, they represent a secure approach to trade for both sellers and buyers. LCs are drawn on an Australian trading bank and can be established with flexible terms in almost any currency.
  • Documentary Collections: (DCs) are an alternative to LCs. They form a secure payment method for suppliers whilst alleviating the burden of compliance with more complex LCs. Suppliers can present their documents at their local branch overseas or alternatively send their documents directly to our bank in Australia.
  • Trade Bill facilities: (TBs) are a loan with a fixed amount, fixed term and fixed interest rate. Terms would generally range from 30 days to 90 days.
    A TB is raised when the supplier is paid. This may occur when a supplier draws down on an LC provided previously. Alternatively the TB may be raised once a supplier has been paid directly without the use of an LC. The bill period would generally correlate with the time required to ship, land and deliver goods to the end customer.

Copyright@ 1999-2010 Financial Services Group Pty Limited
Netstarter - Web DesigneCommerce & Magento
Copyright © 1999 - 2011 - LINK Financial Services Group Pty Limited