Skip to main content

Best Trade Finance Credit Facility

 What is a Trade Finance Credit?

Trade Finance Credit is a method that allows the importer to purchase goods without paying in advance. Instead, the importer can make payment post the delivery of goods or at a scheduled date. This business-to-business (B2B) model usually allows the importer to make the payment within 30, 60, or 90 days followed by an invoice. Therefore, a trade finance credit can possibly be seen as a type of 0% financing model. It also helps to boost the business assets.

In other words, trade finance credit is an arrangement between both parties, i.e., the importer and the exporter. It allows both parties to conduct the exchange of goods and services without the need of paying immediately. So, when the exporter allows the importer to pay at a later date, this is known as trade finance credit.

Trade Finance Credit Analysis

When it comes to allowing a trade finance credit, an exporter or the business needs to evaluate the customers. The evaluation can be done based on the prediction that if the customers will pay or not. Below are some of the sources that can help to define the creditworthiness of the customers.

-  Financial statements: An exporting business may ask the customers to present their financial statements.

-  Credit history of the customer: A business may validate the customer's previous information regarding the credit strength. The simplest way to do so is to identify whether the customers have paid their previous bills or not.

-  Banks: In most cases, banks assist the business in collecting the customer's information regarding creditworthiness.

-  5 Cs of finance credit:

  • Character - The customer's desire to complete payment
  • Capacity - The customer's capacity to complete payment from the cash generated
  • Capital - The customer's assets
  • Collateral - A declared asset in case the payment is not made
  • Conditions - Economic/Political conditions

Our Trade Finance Advisory Services

If you are looking for a trade finance credit facility, then you are in right place. Merchant Trade Guarantee Corporation Company Limited (MTG), the most reputed trade finance solution provider is here for you. Our team of experts comprises scholars in the line of trade finance credit facility. 

Visit merchanttradecorp.com and unlock the benefits of the best trade finance advisory services. We have been catering as the top Trade Finance Solution Provider for over 20 years now. So, what are you waiting for? Connect with us and relax while we assist you with our best trade finance advisory services.

Merchant Trade Guarantee Corporation Company Limited (MTG)

Phone: +66 651209539

Email: info@merchanttradecorp.com

Labels:
Location: Bangkok, Thailand

Comments

Post a Comment

Popular posts from this blog

MTG Helps in Cross-Border Trade Finance Solutions to Facilitate International Trade!!!

MTG is a Trade Finance Company that offers Trade Finance Credit Facilitation and Trade Finance Solutions and Services to make import and export transactions trouble-free. We offer various trade finance operations in various countries that have different laws for export and import. The various operations provided by us are   letter of credit, standby letter of credit, lending, forfeiting, export credit, and financing. Trade finance helps to reduce the risk involved in shipping and payment of goods when both the parties are new to each other or are from different countries and have trust issues. MTG as a Trade Finance Company helps to build their financial relationship and develop a trust element between them.  MTG with the help of financial institutions such as bank provides a credit facility and helps you to pay for goods purchased from the seller. It helps you to have stable cash flow that in turn can help to buy the goods in large quantities. Having a convenient transacti...
Post a Comment
Read more

Best Company for All Your Trade Finance Needs!!!

For over 20 years, Merchant Trade Guarantee Corporation Company Limited (MTG) is successfully offering consultancy services all over the world. Having a unique network in the financial sector with banking and technology professionals Merchant Trade Guarantee Corporation Company Limited (MTG) has emerged as a Leading Trade Finance Consulting Company . It assists and coordinates with various bankers and traders to establish trade credit lines. MTG has its associates and business partners in the United Kingdom, Singapore, New Zealand, India, Thailand, and correspondents in the United Kingdom and Europe. Having international expertise and experience MTG has access to several banking and finance institutions all over the World with connections for the allocation of almost any kind of commercially acceptable Swift transmitted trade credits viable. MTG provides powerful trade finance consultancy services that establish trust and a good reputation with partners, associates, and clie...
Post a Comment
Read more

The Bank Guarantees - Importance Types Advantages and Examples

A bank guarantee is a promise made by the bank. They offer a contract between the two external parties - a seller and a buyer. It includes an applicant, the guarantee, and a beneficiary. The bank takes the liability of the contract with the buyer's debt, obligation, or default.   Bank guarantees are helpful for smaller businesses. With their due diligence, the bank offers credibility to the applicant as the trusted business partner. The bank puts a seal of approval and co-signing the documents on their behalf. It ensures that the contract is safe and trustworthy.  Types of Bank Guarantees You will get the assurance for the bank guarantees for a specific and a predetermined period. It mentions the circumstances under which they are capable of filling up the contract. A bank guarantee can be financial or performance - depending on its nature.  In the financial bank guarantee, the bank promises that the buyer will pay the due debt to the seller. But if the buyer fails t...
Post a Comment
Read more