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Trade Finance

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Trade Finance

Trade Finance services play an important role in assisting traders in streamlining trade from one country to another. These services are the safest way of making international trade transactions. Since PPCBank started operating this service in 2008 with our overseas correspondent bank network and with professional locally sourced and global network, we, PPCBank, give our assurance that we are able to consult and provide you with the best outcome for your business through these services.

All services are detailed below:

Documentary Credit

Import: Letter of Credit

• PPCBank issues a Letter of Credit on behalf of a buyer to the seller to ensure accurate payment when the seller has completed and complied all conditions of the contract in the Letter of Credit.

Export: Letter of Credit

• PPCBank advises, confirms, and negotiates on credit documents issued by the buyer’s bank. PPCBank checks the terms and conditions in the sale contract and makes claims to the payment.

Bank Guarantee

A. Local Bank Guarantee

  • Bid Guarantee: issued to secure any claim by the party inviting the Tender against the Tenderer in the event of withdrawal of the bid of before its expiry date or if the bid is modified unilaterally or if the Tenderer, upon being awarded the contract, refuses to sign the contract or provide further guarantees on request.
  • Performance Guarantee: issued to secure any claims by the buyer against the seller arising from default of delivery or performance of the terms of the terms of the contract signed between the two parties (e.g. Construction, Goods Delivery, Assembly…).
  • Payment Guarantee: issued to secure any claim by the seller against the buyer for payment of the contract price by the agreed date.
  • Advance Payment Guarantee: issued to secure any claims by the buyer against the seller for reimbursement of the buyer’s advance payment on the contract price before delivery of the goods (or advance payment of the full price) in the event that the seller has failed to fulfill this or her contractual obligations in full.
  • Retention Money Guarantee: issued to secure any claim by the buyer against the seller due to possible defects that arise following delivery.

B. Overseas Guarantee

  • Oversea Guarantee/ Standby Letter of Credit (SBLC): a guarantee of payment issued by PPCBank on behalf of a client that is used as a payment guarantee if the client fails to fulfill a contractual commitment with a third party.

C. Shipping Guarantee

  • Shipping Guarantee: issued by PPCBank to guarantee that the shipping company will release goods to customer without the presentation of the original bill of lading.