Exchange Capital provides our clients with the option of Trade Finance. Through our banking partners, we are able to secure Trade Finance solutions such as Letters of Credit, Bank Guarantees as well as the Discounting of Bills at favourable rates.
Letter Of Credit
A Letter Of Credit is an undertaking or promise given by a Bank on behalf of the Importer to the Exporter. If the Exporter presents the complying documents to the Buyer’s designated Bank as specified by the Importer in the Purchase Agreement then the Buyer’s Bank will make payment to the Exporter.
A Bank Guarantee is an undertaking/promise given by a Bank on behalf of the Applicant and in favour of the Beneficiary. Whereas, the Bank has agreed and undertakes that, if the Applicant failed to fulfill his obligations either Financial or Performance as per the Agreement made between the Applicant and the Beneficiary, then the Guarantor Bank on behalf of the Applicant will make payment of the guarantee amount to the Beneficiary upon receipt of a demand or claim from the Beneficiary.
Discounting Of Bills:
The Collection and Discounting of Bills is a common trade service offered by the Banks. The Seller’s Bank collects the payment proceeds on behalf of the Seller, from the Buyer or Buyer’s Bank, for the goods sold by the Seller to the Buyer as per the agreement made between the Seller and the Buyer