Trade Finance

Key Facts

Our dynamic Trade Finance team brings together proactive trade product specialists and operations staff who are readily available to guide and assist you make informed decisions on matters of both international and local trade. We provide both generic and specialised products to suit your individual requirements.

Exporters

Export Letters of Credit

Export Letters of credit are advised within 24 hours of receipt. Upon request our confirmation may also be added. Confirmation eliminates the risk of default by the beneficiary to the bank and can facilitate access to a wide variety of finance solutions both before and after actual shipment has taken place.

Post-shipment financing

Post shipment finance provides cheaper access to funds after shipment but before maturity. This can be done through negotiation/discounting and can therefore enhance your cash-flow position thus further enabling you to focus on your core business. To facilitate this, the fulfilment of all the terms and conditions under the credit is required.

Importers

Import Letters of Credit

Your overseas supplier may require you to provide an irrevocable letter of credit in their favour to secure a trade transaction. Our network of branches and correspondent banks enables us issue Letters of Credit to beneficiaries in virtually all countries worldwide and in all freely convertible currencies.

Subject to fulfilment of all our requirements, our policy is to ensure the beneficiary's bankers receive our Letters of credit within 24 hours of our receipt of your application.

Revolving Letters of Credit (Conditional)

Revolving letters of credit are useful for buyers and sellers who have a long standing trading relationship. They involve our conditional undertaking to reinstate a letter of credit either after the occurrence of a specific event or after a specific time period has lapsed. Depending on your needs, Barclays will undertake to reinstate these instruments automatically and without the requirement of any further amendment from you. The number of times within which this can take place will be agreed upon and specified in the documentary credit.

Standby Letters of Credit

Whereas payments under regular letters of credit are triggered by the performance of the exporter under a specified trade contract, payments under Standby letters of credit are triggered by the default of the importer under a specific trade contract. Standby Letters of credit are irrevocable and payable on demand.

Upon your request as an importer, Barclays can provide this form of conditional undertaking on your behalf to the beneficiary. Should you fail to make settlement, we will make settlement on your behalf upon the presentation of specific documents by the beneficiary required under the credit.

Import Letter of credit Refinancing

This is usually applicable in instances where certain unfavourable market conditions exist on the due payment date and for one reason or another, the applicant is not willing to make settlement. We can arrange to make settlement of both sight and usance import letters of credit on your behalf and refinance locally up to 180 days after payment date depending on your requirements. This can be applied in various instances and ultimately provides you with flexibility to manage your cash-flows.

Import Documentary Collections


Under documentary collections, your overseas suppliers present appropriate documentation to their bankers which are then forwarded to us to facilitate collection on their behalf. We ensure that you are advised promptly and that their instructions are carried out exactly as per their requirements. Different forms of financing can be arranged based on the presentation of appropriate documentation.

Other

Guarantees/Bonds and Indemnities

Bank guarantees have a number of advantages they provide to both international and local businesses. They enable you tender for business which you might have previously considered out of reach, they can improve the terms of your tenders and they can help you negotiate better terms on contracts. The main types of guarantees/bonds that we provide are bid bonds, performance guarantees, custom bonds, advance payments guarantees, retention money guarantees, shipping guarantees and maintenance guarantees applicable in different circumstances.

Invoice/Bill discounting

Different types of financial and /or commercial documents are exchanged during trade transactions which provide evidence of a transaction as well as acknowledgement of debt. This specialised form of trade financing can be availed either with or without recourse to yourselves however this is dependent on the credit assessment of both parties to the transaction. It enhances your cash-flow position and is competitively priced.

For further information into our trade solutions, please contact your Barclays Relationship Manager or Commercial Banking Trade Finance Dept on +260 211 366150 or morris.bwalya@barclays.com