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Trade Finance
Documentary Letters of Credit
Import and export trade can be unpredictable, but we’re here to back you up. NCBA bank makes your local and international transactions easier with ensuring all stipulated documents are in order, and a Letter of Credit (LC) is supplied to your supplier guaranteeing that payment for goods and services will be honoured fully and on time by us. This product is specially tailored for those in export and import trade. Our team of Trade Finance experts is at hand to guide you on transactions from end to end.
We offer:
- Sight LCs that require the buyer to make payment once the documents have been presented and verified by the issuing bank.
- Term or Usance LCs which have a future determinable maturity date.
Bank Guarantees, Bonds and Indemnities
Tender for business which you might have previously considered out of reach and get favourable terms on your tenders as you are empowered to negotiate better terms on contracts. Bank Guarantees are binding commitments given by NCBA to support your trading activities and are payable on demand, with a repayment period of 365 days or vetted on a case by case basis.
We offer:
- Unsecured Bid Bonds up to a limit of UGX 500 million.
- Performance guarantees
- Payment Guarantees for Distributors
- Custom bonds
- Advance payments guarantees
- Retention and money guarantees
- Shipping guarantees
Standby Letters of Credit
Whereas payments under regular letters of credit are triggered by the performance of the exporter under a specified trade contract, SBLCs are binding commitments given by the bank to support your trading activities and are payable on specific conditions, not just simple demand. NCBA can provide this form of conditional undertaking on your behalf and should you be unable to, make a settlement on your behalf upon the presentation of required documents.
Features
- Available in all major currencies.
- This form of financing mitigates risk.
Documentary Collections
Our Documentary Collections facility offers exporters and importers flexibility, security and comfort as we manage all document-handling needs on their behalf. 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.
Value Chain Finance Loans
Get flexible, short-term funding structured to suit your company’s trading cycle to support your transactions and improve business cash flow. Our trade finance experts can also negotiate discounts with your suppliers for upfront payments in all major currencies.
We help you fund trade transactions with loans covering, but not limited to:
- Invoice Discounting
- Distributor Finance
- LPO financing
Bills Avalisation
Bill avalisation is the bank’s undertaking on behalf of the importer, to honour payments of Bills of Exchange from your supplier. This financing offers credit enhancement and improved relationships with your suppliers, and can even offer you the leeway to request a discount. It also provides a form of security to the trading parties as you benefit from additional time to settle your payments.
Short Term Trade Loans
We offer working capital loans designed to provide relief for corporates and SMEs in urgent need of cash injection. This facility offers a flexible repayment period of up to one year, based on your borrowing purpose and cash conversion cycle.
Our Short Term Trade Loans include:
- Post Import Finance
- Stock Loans
- LPO or Contract Financing
- Pre-shipment Export Finance
- Direct Import Finance
Discount Loans
NCBA Bank’s Discount Loans can be utilised to finance working capital for current ongoing contracts by discounting confirmed unpaid invoices, Bills, Letters of Credit and Cheques. Our terms are negotiable and offer payment periods of up to 360 Days.
Invoice Discounting
Release funds from your unpaid invoices to ensure business flow, while maintaining control over the collection of payments. This discounted finance solution is ideal for suppliers to businesses and other reputable institutions. Our Invoice Discounting terms are negotiable and offer payment periods of up to 180 Days.
Distributor Finance
This solution is suited for companies in a distributor agreement with large manufacturers. It covers your business during the holding of goods for resale and bridges the liquidity gap until you you receive funds from the sale of goods. NCBA’s distributor finance solutions offer you access to funds at a significantly lower cost with flexible payment structures. You are assured a steady source of finance with credit limits tailored to your business needs.
For an Importer
Get flexible, short-term funding structured to suit your company’s trading cycle to support your transactions and improve business cash flow. Our trade finance experts can also negotiate discounts with your suppliers for upfront payments in all major currencies. We help you fund trade transactions with loans covering, but not limited to:
- Import letters of credit
- Standby letters of credit
- Inward Documentary collections
- Bill avalisation
- Post import loans
For an Exporter
Get flexible, short-term funding structured to suit your company’s trading cycle to support your transactions and improve business cash flow. Our trade finance experts can also negotiate discounts with your suppliers for upfront payments in all major currencies. We help you fund trade transactions with loans covering, but not limited to:
- Export Letters of credit
- Transferrable Letters of credit
- Back-to-back credits
- Pre-shipment financing
- Post-shipment financing
Sounds like a deal?