Central London Capital specialises in cross border Trade Finance is available for clients who have stable turnover and a minimum one year experience of trading the respective goods. The client’s participation in the financing is of no less than 50% (except for exchange commodity when 10-30% participation is possible). Financing can be provided against goods in stock or in transit, as well as the right of claim to the debtor, secured by bank guarantees, insurance policies or documentary letters of credit. The minimum amount of a credit line is EUR 1 million (or the equivalent amount in the US dollars), the maximum is EUR 25 million euros (or the equivalent amount in the US dollars); term – up to 12 months (with a possibility of extension).
Main Options for Trade Finance:
Financing of purchase of the goods under pledge of the goods (pre-export financing)
The bank finances a deal on purchase of the goods intended for export by issuing the letters of credit or guarantees; or the bank makes an advance payment in favour of the approved manufacturer \ supplier. Financing is provided from the day of the advance payment or shipment of the goods until the dispatch from the terminal (including accumulation and storage of the goods at a terminal acceptable for the confirming bank).
Financing of purchase of the goods under pledge of the goods and against claim rights against the end buyer, secured by an insurance policy, a letter of credit or a bank guarantee:
The bank finances a deal on purchase of the goods through the issuance of letters of credit or guarantees; or the bank makes an advance payment. In such case, the goods are delivered to the buyer, when the buyer’s payment obligations are secured by an insurance policy or a guarantee/letter of credit acceptable by the confirming bank.
Financing against warehoused goods in the Baltic countries and Russia:
In this case, a trading company purchases goods at its own expense and places them in an agreed customs warehouse or a consignment warehouse. The bank opens a credit line for a company secured by the goods. The client can receive the goods from the warehouse after repayment of the relevant part of the credit line.
Financing of goods in transit against bills of lading:
A trading company purchases goods at its own or a supplier’s expense. Upon receipt of the bills of lading, confirming shipment of the goods, and presenting them to the bank, the trading company receives financing in the form of a loan, which must be repaid upon arrival of the goods to the port of destination, upon receipt of payment from the end buyer or, in the event of their further placement in an pre-agreed customs warehouse in the Baltic countries (a consignment warehouse in Russia), immediately prior to the receipt of the goods from the warehouse.
The bank finances a trading company for the time period for which the company has provided a deferred payment to its partner (buyer of the goods). Obligations of the buyer must be secured by an insurance policy, a letter of credit or a guarantee acceptable to the bank.