Trade Finance

ABM International General Trading LLC

Trade Finance
Trade finance (TF) represents the financial instruments and products that are used by companies to facilitate international trade and commerce. Trade finance makes it possible and easier for importers and exporters to transact business through trade. Trade finance is an umbrella term meaning it covers many financial products that banks and companies utilize to make trade transactions feasible.TF it is a payment instrument and at the same time effectively manages the risks associated with doing business internationally.
To succeed in today’s global marketplace and win sales against foreign competitors, exporters must offer their customers attractive sales terms supported by appropriate payment methods. Getting paid in full and on time is the ultimate goal for each export sale, so an appropriate payment method must be chosen carefully to minimize the payment risk while also accommodating the buyer’s needs. For exporters, any sale is a gift until payment is received. Therefore, the exporter wants to receive payment as soon as possible, preferably as soon as an order is placed or before the goods are sent. For importers, any payment is a donation until the goods are received. Therefore, importers want to receive the goods as soon as possible but to delay payment as long as possible, preferably until after the goods are resold to generate enough income to pay the exporter.
      Bank-guaranteed trade finance

          – Letters of credit (LC)
          – Guarantees
          – Collections
      Not-bank-guaranteed trade finance

          – Open Account
 Below are a few of the financial instruments used in trade finance by ABM International General Trading L.L.C.
          – Lending lines of credit can be issued by banks to help both importers and exporters.
          – Letters of credit reduce the risk associated with global trade since the buyer’s bank guarantees payment to the seller for the goods shipped. However, the buyer is also protected since payment will not be made unless the terms in the LC are met by the seller. Both parties have to honor the agreement for the transaction to go through.
          – Factoring is when companies are paid based on a percentage of their accounts receivables.
          – Export credit or working capital can be supplied to exporters.
          – Insurance can be used for shipping and the delivery of goods and can also protect the exporter from nonpayment by the buyer.

Other Benefits which ABM can provide as Trade Finance
          – Improves Cash Flow and Efficiency of Operations
          – Increased Revenue and Earnings
          – Reduce the Risk of Financial Hardship

So with the expertise of financial experts and long experience in this field, Our Company is ready to provide financial services for all importers and exporters.