Trade for Importers
At UOB Business Banking, we offer a comprehensive range of solutions to companies engaged in international and domestic trade transactions including Letters of Credit, Documentary Collection, Banker's Guarantee, Standby Letter of Credit and Open Account transactions.
Our Trade Finance services will serve as a bridge to the buying and selling of goods and services across national borders or territories, allowing both the buyer and seller to expand their markets that otherwise may not be made available to them.
Please refer to the following for more information:
- Import Letter of Credit
An Import Letter of Credit is a written undertaking given by the Issuing Bank (UOB), for the account of the buyer (Applicant), to pay the seller (Beneficiary) the value of the draft and/or documents, provided the terms and conditions set out in the Import Letter of Credit are complied with.
- Import Documentary Collection
The importer only effects payment in exchange for the documents of title for the goods shipped while detailed requirements of opening a letter of credit are avoided. These documents can also assist the exporter by directing that the goods be released only upon the payment or acceptance of the draft by the importer (Applicant).
- Shipping Guarantee
A Shipping Guarantee allows an importer to take possession of goods from a shipping company when the goods arrive at port prior to the receipt of shipping documents such as Negotiable Bill of Lading. It is a written indemnity by the Bank to the shipping company.
A Shipping Guarantee is granted with Trade Finance facilities. This helps importers avoid unnecessary port and warehouse charges caused by delays in clearing goods.
- Trust Receipt/Import Invoice Financing
Import Invoice Financing provides buyers with short term funding to ease their cash flow by financing the goods purchased. Funds are paid directly to the supplier. This is also known as Trust Receipt (TR) whereby title of goods is held by the Bank. Under a TR arrangement, the Bank retains the title to the goods but allows the buyer to take possession of the goods on trust for resale before paying the Bank on TR due date. TR financing is applicable to goods imported under documentary credit.
- Standby Letter of Credit (SBLC)
Standby Letter of Credit (SBLC) is used to guarantee repayment of loans, ensure fulfilment of a contract, and secure payment for goods delivered by third parties. The beneficiary to a SBLC can be claimed on demand. SBLC is generally less complicated and involves far less documentation requirements than Irrevocable Letter of Credit.
Receive updates on the status of your import and export transactions via UOB eAlerts. Click here for more information on UOB eAlerts.