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:
This is the least risky option for importers as payment
is only made after the goods are received.
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.
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.
This is the riskiest option for importers as payment
is effected before the goods are received.
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.
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
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.
Our experienced trade advisors are available to assist
you on any aspect of Documentary Credit issuance.
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
Documentary Credit options
Red clause credits
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.
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.
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.
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.
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.
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
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
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.