Short-term financing is often required by businesses for a variety of purposes, for example to bridge the gap between invoicing and receipt of payment. BACB offers a number of short-term lending products to assist with your financing needs.
Accelerated Payment - L/C and Bill Discounting
There is no need to wait for payment once you have shipped your goods. BACB can provide L/C beneficiaries with a tailored discounting service for documents presented in conformity with a usance L/C issued or confirmed by us. Alternatively we may be prepared to discount bills of exchange or promissory notes issued in connection with open account or bill collection sales, subject to these instruments being issued or avalised by acceptable counterparties. We are an active participant in the London markets and so are well placed to offer prompt and competitive quotes in all major currencies and a growing number of Arab Mediterranean currencies in which we act as a market maker.
Exporters commonly find demands on cashflow are highest during the fabrication / procurement phase of a contract. Whether purchasing materials or paying sub-contractors, finance is sometimes required to get through this difficult stage, and BACB can ease the pressure.
Subject to status, beneficiaries of a letter of credit issued or confirmed by BACB may be eligible for loan facilities from the bank to finance supplies. BACB will typically consider a Loan Against Export facility linked to its own L/C payment obligation for up to 70% of the cost outlay. Loans can be made available for up to 6 months before shipment. In addition BACB can consider structuring deals using an L/C or other receivables as security to provide you with the funds to meet your cashflow demands at competitive rates.
In many situations the back-to-back L/C (or simple proceeds assignment) can provide your suppliers with the secure terms they require. BACB has been active in these products for many years with established formats and procedures to protect you whilst satisfying your suppliers' needs. Subject to the terms of the two contracts (trades) BACB can offer facilities and the expertise of its staff to guide and help you through the possible pitfalls.
Please contact us and we will be pleased to discuss your individual requirements for all our financing packages.
Tel: +44 20 7972 6902
Tel: +44 20 7972 6933