Trade Loans
We maintain strong correspondent banking and trade finance relationship with reputable banks worldwide. For our customers uab offers flexible, short-to-medium term borrowing facilities linked to specific import or export transactions across the world. Requirement of collateral securities are decided based on your experience in import & export and other credit risk assessment on the borrower.
An international trade transaction typically will begin with the issuance of Letters of Credit or an International Fund Transfer through SWIFT for payment of the goods. uab through its Trade Center provides these services.
A Trade Loan will thereafter be structured and uab offers you a range of financing options.
Shipping loans or pre-shipment financing means that the exporter applies for special short-term financing for the purpose of preparing goods for export. Loan can get approved by showing Letter of credit or Firm order received from your overseas buyer. The exporter will upon completing the export, submit the export documents to uab for collection/negotiation. The proceeds of funds from the exports received by uab will be used to repay the financing funds.
When your overseas buyer is paying the cost of goods after a credit period, you can avail the fund immediately on export from uab bank against discounting of your export bill. Even when payment is at sight , you can get money for short term before your goods reach buyer and payment is made.
We provide short-term finance for releasing goods arrived at port. You can repay this bridge loan after goods are released and arrived at your warehouse by converting in to a normal working capital facility such as Overdraft against stock, Overdraft against book debt or a pledge loan