Trade Finance

trade finance

The trade finance specialists of SUISSE BANK PLC are always ready to promote your commercial transactions in the field of finance, by means of providing financial instruments that meet your requirements:

  • guarantees (BG)
  • standby letters of credit (SBLC)
  • documentary letters of credit (LC) 
  • proofs of funds (POF)
  • warranties (avals)

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Trade funding implies receipt of assets for business on more favorable terms than overdraft on your bank account at the bank. Trade funding includes transformation of internal and external accounts receivable into assets soon after the receipt. Insured accounts receivable have a set disposal date and, as compared to fixed assets, are easily realized. After selling the accounts receivable you may change your balance type and receive access to additional funding sources that you may use at your discretion.

Benefits: 

  • Access to SUISSE BANK PLC´ network
  • Professional services for the processing of commercial transactions
  • Advantageous commission fees


Guarantee (BG)

SUISSE BANK PLC is frequently asked to provided guarantees in the name of its clients. They are generally importers, exporters or contractors whose business partners demand a promise of payment in some form. A guarantee is a written undertaking by the financial institution that in the event the customer does not meet a certain obligation the financial institution will pay the amount of money to the party in question in the name of the customer.

Guarantees can be conditional or unconditional. If the guarantee is conditional this means that the party who wants to claim a guarantee must fulfil a few conditions before the guarantor is prepared to pay the corresponding sum to the party entitled to the claim. If the guarantee is a simple receivables guarantee this means that the party entitled to the claim in the document can demand the claim listed in the guarantee by means of a simple request..

How does it work?

The applicant fills in a form for the issuing of a guarantee in which he, the party entitled to the claim, lists the terms, the amount, the expiry date and the purpose of the guarantee.

The most widely used types of guarantees are:

  • Payment guarantee
  • Tender guarantee
  • Advance payment guarantee
  • Performance bond

Application for BG

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Verbiage of BG

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Standby Letter of Credit (SBLC)

In the case of the standby letter of credit, the financial institution makes an undertaking to a beneficiary, e.g. a supplier, an exporter or trader, to perform a payment for the client if it is not able to fulfil its contractual obligations if the beneficiary submits a written demand for payment. The clients are generally importers or purchasers.

The standby letters of credit are issued for a certain term. In general this is the period of the term of validity of a contract or the period of the delivery of goods for which a contractual undertaking has been made. A standby letter of credit can be deleted before the expiry date agreed upon. This can be performed through the declaration of the client, and necessarily with the consent of the beneficiary. 

How does it work?

The applicant fills in a form for the issuing of a standby letter of credit in which he, the party entitled to the claim, lists the terms, the amount, the expiry date and the purpose of the standby letter of credit.

Application for SBLC

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Verbiage of SBLC

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Documentary Letter of Credit (LC)

Letters of credit have appeared almost simultaneously with banks. Their performance is based on the fact that the solvency of an unknown buyer is replaced with the solvency of a well-known bank. SUISSE BANK PLC often has to put itself in place of its clients and give certain liabilities that the payment will be made subject to performance of certain conditions . Such mechanism is called a letter of credit or a documentary letter of credit. Notwithstanding that there are various types of the letters of credit most of people are, as a rule, familiar with the import or export letter of credit terms. Such terms are used when SUISSE BANK PLC represents a client that is an importer or exporter.


How does it work?

When the Buyer applies for the import letter of credit it specifies the exporter, amount, currency, time, commodity type as well as other payment terms. Then the exporter in its country is informed that a letter of credit has been opened in its name, in this manner it becomes an export letter of credit beneficiary . Then the exporter ships the goods to the importer and presents necessary documents to the bank. The bank checks the documents for their correspondence to the letter of credit and makes payment to the exporter. Eventually the bank requests settlement from the importer.

Application for LC

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Verbiage of LC

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Proof of Funds (POF)

A Proof of Funds serves to verify that the investor does in actual fact have the necessary capital for a particular investment. The intention behind this - for example with respect to large projects - is to guarantee that only those who would ultimately be in a position to realise such a project submit offers. The purpose of the proof is to ensure that the financial resources required for a transaction are available and also lawful.

Proof of Funds come in different formats and can contain a covering letter from the bank, SWIFT verification or account statements.

Proof of Funds can be requested for financing, collateralisation and projects, such as for the construction of real-estate property or the purchase of goods, real estate or financial instruments.

How does it work?

In order to be issued with a Proof of Funds, the applicant specifies the amount and the currency (either USD or EUR) on the corresponding form.

Application for POF

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Verbiage of POF

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Warranty (Aval)

A warranty is also frequently described as an aval and constitutes the assumption of a risk by the financial institution towards a third party which is agreed upon in writing. An aval is an accessory undertaking to pay by a financial institute offering a guarantee to make a payment to the beneficiary of the aval and to make the payment instead of its client if a specific event agreed upon between the parties to the contract arises.

The customer receives a creditworthiness advantage through the financial institution‘s trust, avoids capital commitments and has a liquidity advantage as a result.

The most widely used types of sureties are: 

  • Performance warranty
  • Service warranty
  • Advance payment warranty
  • Rental payment warranty 

How does it work?

The applicant fills in a form for the issuing of a warranty in which he, the party entitled to the claim, lists the terms, the amount, the expiry date and the purpose of the warranty.

Application for Warranty

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