Trade Finance Product & Services
- Inward bills for Collection & Avalisation services
Services offered under the product covers Import or local Trade documentary bills for collections received by corporate buyers against goods & services purchased from local or overseas sellers. Avalisation services for such bills provide an undertaking by the Bank for payment of inward collection bills on due dates on behalf of Bank's customer.
- Outward bill for Collection (OBC) & Bill Discounting
Services offered under the product deals with Export and Local Trade documentary bills for collections sent by corporate Exporters or sellers against supply of goods & / or services to overseas & local buyers. Discounting services for outward bills are also provided to allow funding by the Bank against future proceeds of underlying bills on recourse & non-recourse basis to Bank's customer under approved credit lines for Bill discounting.
- Letters of Credit Issuance
“Documentary Letters of Credit” (LCs) facilities are a standard product offered by most commercial banks to customers who have a requirement to import or buy goods and services from sellers based in the International as well as the domestic market. “Documentary Letters of Credit” (LCs) are a long established mechanism by which banks facilitate international & domestic trade. ANB’s Documentary Letters of Credit Services are highly efficient and are serviced through a team of experienced and responsive Trade services staff.
Under the Documentary Letters of credit product ANB issues written undertakings in favour of the seller (the beneficiary) at the request and in accordance with the instructions of the buyer (the applicant being ANB’s Customer), to effect payment up to a stated amount within prescribed time limit, against stipulated documents, other terms and conditions.
- Letters of Credit Advising
Documentary Letters of Credit Advising is a standard Trade product offered by ANB to our correspondent banks, ANB’s London Branch & other Network branches of Arab Bank PLC that require L/Cs opened by them to be advised to a beneficiary (customer or non – customer) based in KSA or surrounding GCC territories as an Advising Bank.
- Letters of Credit Confirmation
Documentary Letters of Credit confirmation services constitutes a definite undertaking on part of the confirming bank, in addition to that of the issuing bank to pay, accept a draft, incur a deferred payment undertaking or negotiate under documents that comply with the terms and conditions of the credit. ANB offers such services to KSA, GCC or other geography based customers at the request of our correspondent banks, ANB’s London Branch & other Network branches of Arab Bank PLC.
- Letters of Credit Negotiation
Negotiation or Discounting of Letters of Credit by ANB covers the taking up or financing act of purchase by the bank of goods or service related drafts and or documents under a complying presentation that meets all terms and condition of the underlying documentary letters of credit, by advancing or agreeing to advance funds to the LC beneficiary (Customer or non-Customer) on or before the Banking day on which reimbursement is due to the nominated Bank. ANB is active in supporting its Export / Local trading customers in providing LC negotiation or discounting services to support the sell side of our customer’s business requirements.
- Import Letter of Credit or Collection Bill Financing
Import LC or collection Bill financing or Import Loans (IML) offered by ANB enables an importer to finance fulfillment of his payment obligation under a sight LC or Trade collection bill documentary presentation or at the maturity of the usance period of a tenor bill through the use of short-term trade finance.
- Shipping Guarantees
Shipping guarantees offered by ANB enable the importer to effect clearance of goods from the shipping company in the event that the original Bill of Lading is not received by the bank or the importer before the merchandise has reached the destination.
ANB is fully active in servicing the needs of its customers for issuance of Guaratees. Guarantees (also referred to as Bonds) issued by ANB are written undertakings, either conditional or unconditional, on behalf of a Customer or an Overseas correspondent Bank, guaranteeing that should the Contractor / Supplier not comply with his obligations under a contract, leading to a claim under the Guarantee, then ANB will provide financial compensation in accordance with terms of the Guarantee instrument.
10. Online Trade Finance Services (eTrade)
Online Trade Finance Service (E-Trade) is an Internet based solution, which offers a full suite of traditional Trade Finance services in Islamic and conventional manner to ANB’s customers and allows them to Issue, Amend, and Cancel transactions. This service will provide a fast, easy and secure solution for trade finance functions to customers including Letters of Credit, Documentary Collections, and Guarantees. The service also have other general features like setting personalized alerts, and viewing standard reports. It also have the capability to allow customers to view transaction history, and download transactional advices and copies of processed instruments.
Click here to login to eTrade.