Trade Finance

As a corporation or individual dealing with imports and exports, we will assist you by issuing letters of credit, offering guarantees, and managing import/export documentation.

• Letters of Credit (LCS)

  Issued by the Bank at the request of the applicant (importer/applicant) and the Bank gives an irrevocable undertaking to pay the beneficiary/exporter for the goods or services.

  Benefits:

  • Payment is guaranteed by both the issuing bank and the confirming bank as long as compliant documents are presented.
  • Mitigate the buyer/country risks.
  • Ensure delivery is done within schedule.

• Bank Guarantees

  A written irrevocable undertaking from the Bank to pay the seller if the buyer defaults on his obligations.

  Some of the Bank guarantees include the following:

  • Bid/tender bonds
  • Performance bonds
  • Advance payment guarantees
  • Payment guarantees
  • Credit guarantees

  Benefits:

  • Provides security for performance
  • Reduce risk
  • Give assurance of the serious intent and business standing of the party whose obligations are underwritten.

• Invoice Discounting

  With Co-op Banks’ Invoice Discounting, you can withdraw money against sales invoices before payments are done. This is available to various prequalified procuring entities like UNMISS, UNDP, UNMAS, UNIFSA, WFP etc.

  Benefits:

  • This makes available 70-80% of the invoice value as soon as it has been raised and the remainder is made available when the customer pays.
  • Enables you to unlock your business’ working capital and cash flow that would be obtained after a period of time depending on the terms of payment e.g. 30 – 45 days after invoicing.

• Purchase Order Financing (LPO)

  LPO Financing is a form of short-term financing designed for suppliers whereby funds are advanced against local purchase orders that suppliers will have received to supply certain goods or services.

  Benefits:

  • Provides working capital to execute the contract
  • Faster/timely execution of the contract as a result of the access to funds.

• Core Trade Finance Solutions

  Product Name	Tenure	Core Purpose & Security
  Bid Securities (Bid Bonds)	30–90 days	Assures project owners that the bidder will honor the contract bid. (Security: Cash margin, collateral, or counter-guarantee)
  Performance Guarantees	6–24 months	Ensures contractor fulfills all contractual obligations. (Security: Collateral, cash margin, or corporate guarantee)
  Advance Payment Guarantees	6–18 months	Protects the project owner’s advanced funds. (Security: Collateral, lien on receivables, or corporate guarantee)
  Letters of Credit (LCs)	30–180 days	Guarantees secure payment to international exporters and Importers. (Security: Cash margin, lien on goods, or bank guarantee)
  LPO Financing	30–90 days	Enables suppliers to fulfill purchase orders immediately. (Security: Assignment of LPO proceeds, or collateral)
  Invoice Discounting	30–120 days	Provides immediate liquidity by converting receivables into cash. (Security: Invoice assignment, or debtor’s creditworthiness)
  Temporary Overdraft (TOD)	7–30 days	Provides quick liquidity to clear customs duties and port charges. (Security: corporate guarantees, or lien on receivables)
  Commission-Based Lending	Flexible (Short to med)	Non-interest-based financing for trade and working capital. (Security: Collateral, guarantees, or assignment of proceeds)