Under the Documentary Collection arrangement (See documentary Credits section for Details)
—particularly Documents against acceptance (D/A), the seller/exporter may request an undertaking from the importer’s (buyer’s) bank that they will pay for the goods on the due date. Finance Trust Bank will support you as an importer with this undertaking (technically called Avalization), provided the importer meets the bank’s terms and conditions for this credit facility.
Benefits:
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A good way of managing liquidity/cashflows as payments can be tagged to periods of high sales.
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Enables the importer to take advantage of low prices to stock in plenty.
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Helps the importer to boost working capital and avoid stockouts.
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Very affordable compared to other forms of credit.
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Increases Trust between the Importer and exporter.
Requirements:
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An operational bank account with Finance Trust bank
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A formal Credit Limit/Overdraft facility pre-arranged with the bank prior to importation of the avalized goods.