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Trade Finance

At Commercial Bank, we can provide sustained support to facilitate international trade success, so that you can meet the demands of a global business environment.


We have played a key role in international trade links in Qatar and beyond since 1975. This experience means that we offer the knowledge, expertise and support that businesses need to flourish in the international market.

Our comprehensive service and product includes:

  • Import and export finance
  • Shipping guarantees
  • Vendor support
  • Receivable services
  • Document preparation
  • Letters of guarantee and credit
​​Wherever you are, a member of our specialist service team can support and assist your company's development to find the solutions you need for your import and export requirements. ​

We construct your import finance facilities around your trading cycle, this ensures that finance will always be available to cover your business needs. Because your facilities will be structured around the actual business you do, you are able to enjoy competitive interest rates.

There are four ways for importers to make payment to exporters in international trade:


Open account

This is the least risky option for importers as payment is only made after the goods are received. 


Documentary collection

Documentary collections offer another low risk payment option for importers as payment is usually effected in exchange for the documents of title to the goods.


Documentary credit

A ‘documentary credit’ is a written undertaking by a bank issued on the instructions of an importer to an exporter to effect payment for the goods under stated conditions. However, importers require facilities to apply for documentary credits.


Advance payment

This is the riskiest option for importers as payment is effected before the goods are received.


Documentary Credits 


A Documentary Credit (DC) issued by Commercial Bank provides comfort and security to both the buyer and supplier by helping to mitigate the inherent risks of international trade. Documentary Credits issued have a number of key benefits for both you and your suppliers.


Global recognition

Commercial Bank enjoys global recognition as one of the best-regarded financial services organisations in Qatar. Documentary Credits issued by us in your name are widely accepted, both by your vendors and their banks.


Global network

We route documentary credits through our worldwide network of correspondents. This helps reduce processing times and ensures that the documentary credit is advised to your supplier in good time. This invaluable service is particularly helpful if you need your goods at short notice or if your vendor needs some time to prepare export documents.


Expert assistance

Our experienced trade advisors are available to assist you on any aspect of Documentary Credit issuance.


Vendor support

Beneficiaries of Commercial Bank Documentary Credits are entitled to the same high level of professional support and advice as any of our customers. Our overseas correspondents can mediate between you and your suppliers, assisting them with export document preparation and identifying discrepancies. In some instances, we also offer export finance to your supplier after completion of some documentation.

Documentary Credit options

  • Standby
  • Transferable
  • Back-to-back
  • Revolving
  • Red clause credits


Shipping guarantees

  • Possession of goods before payment
  • Avoids unnecessary delays to business
  • Eliminates demurrage/storage charges
  • Payment deferred until supplier’s documents are presented

Sometimes, your goods may arrive in port before the shipping documents have been processed through the banking system. Commercial Bank can issue a shipping guarantee, allowing you to take control of the goods from the shipping company without the bill of lading. A shipping guarantee issued by Commercial Bank is widely accepted by shipping companies.​


​Export services

Here at Commercial Bank, we provide a range of export services for our clients. Whether you are a new or long-established exporter, our trade services can help you to reduce risks allowing you to focus on expanding your export business.

By requesting that your buyers advise documentary credits through us, you will benefit immediately from our international correspondent network.  What’s more, if you are the beneficiary of a documentary credit issued by a Commercial Bank office, you are entitled to the same level of service excellence as any of our regular customers.

 

​Documentary collections for exports

Documentary collections offer a simple, cost-effective and secure means of trading internationally.  If your buyer does not issue documentary credits, collections offer the next safest alternative to open account trade.

During a collection, banks act as intermediaries, ensuring that documents are only released against payment or acceptance. Collections offer the seller comfort that they will not lose control of the goods without payment ,or the promise to pay.


Meanwhile, from your buyer’s perspective, collections offer a simple and cheaper alternative to the DC and hence may enable you to negotiate better terms. We offer a choice of documentary collection methods, each offering you peace of mind while helping you to reduce costs. These include:


Documents against payment (D/P)

Documents are released to importers upon payment.

Documents against acceptance (D/A)

Documents are released to importers against their promise to pay.


Documentary collection confirmation

With a DC confirmed by Commercial Bank, you can enjoy the security of payment commitments from both the DC Issuing bank and Commercial Bank, the confirming bank, helping you to reduce bank and country risk.  If your documents are presented in compliance with the terms and conditions of the DC, payment from Commercial Bank will be final.


Documentary collection advice

Commercial Bank can check the authenticity of DCs issued in your favour, enabling you to start arranging shipment quickly by pre-advising the full text of the DC to you by telephone or fax. Our electronic advice service provides electronic copies of all incoming SWIFT-based export DCs and advices via email, helping you improve communication and efficiency.


Export finance

Commercial Bank provides export finance solutions to meet your business needs.  Because we take time to understand your business, you can rest assured that your facilities will be structured around the actual business you do, taking into account your unique requirements at different stages of your trade cycle. Our range of export financing options can help to accommodate any funding gaps in your trade cycle.


If documents are found to have discrepancies it may be possible to negotiate under reserve or against an indemnity. It may also be possible to cable the DC issuing bank for authorisation to negotiate, despite the listed discrepancies. Documents can then be sent to the issuing bank for approval and payment.​


Pre-shipment finance

We can offer facilities such as packing credits or manufacturing advances aimed at easing your cash flow while you prepare to complete your shipment orders.


Post-shipment finance

We may negotiate clean documents and pay the discounted value of the invoice concerned.  No facilities are required, and funds will typically be advanced to you within 24 hours.

Receivable services

A comprehensive open account trade solution offering you financing lines through the sale of invoices or accounts receivable, credit protection against bad debts and maintenance of multi-currency sales ledger to track sales and collection.


 

 Document preparation

 

Our document preparation service includes:

  • Scrutiny of export LCs and advice on ambiguous clauses
  • Preparation of BL instruction for liner
  • Collection and review of BL, insurance and inspection certificates
  • Preparation of documents as required by LC terms
  • Execution of export documents and presentation for negotiation
  • Regular MIS on document status

Trade training

We know that achieving great results in the global market requires a thorough understanding of best practice principles. As part of our continued commitment to our customers, we arrange training sessions and trade seminars for your staff and suppliers. We have also developed a number of trade tools that have been designed to assist businesses as they learn more about international trade.

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