Frequently Asked Questions

What type of trade finance products do you offer and how long does it take to open an LC or a BG?

Our products & Services are,

1. Bonds

(a) Bid bond (b) Performance bond (c) Advance payment bond (d) Rental bond (e) Warranty bond (f) Indemnity bond etc. 

2. Bank Guarantee

(a) Tender guarantee (b) Performance guarantee (c) Advance payment guarantee (d) Rental guarantee (e) Warranty bond, etc. 

3. Letter of Credit

(a) At Sight LC (b). Usance LC (c) Standby Letter of Credit (SBLC)

4. SWIFT Services

(a) Ready willing and able letter (RWA), (b) Proof of funds (POF) (c) Comfort letter (BCL), and Other services. 

Depends upon the type of product applicant requirements and the country’s time zone. Our regular transactions period closes within 2 working days, For some cases, we process within 24hrs.

What is your document collection process for LC?

ITF works only document against payment which means we shall be flexible to provide Sight LC. Due to banking restriction and risks we don’t do document against acceptance. But we do provide LC with acceptance message, check with us to know more about this. 

What is the difference between yours and our Bank line of credit?

Your bank requires collateral or a security to open a line of credit to get Letter of credit or a Bank guarantee, Your asset will be liable with your bank and it will be limited to the particular transaction.

Whereas, with ITF there is no need to pledge your asset nor any cash collateral. 

Do you offer products from top rated banks and institutions?

Yes, We do offer our products from top-rated banks, financial institutions and credit insurance companies. 

What are your interest rates?

We offer issuance rates rather than interest rates, Our charges are solely based on the instrument issuance and it fees may vary depends upon the issuing institutions.

Our companies participate in Government tenders do you offer Bid bond and other guarantees?

Yes, Most of our prominent products are bid bond, performance bond, and advance payment guarantee for construction and service providers.

Many companies are willing to participate in government tenders even though participants have a relevant field experience but they lack asset or line of credit to participate in a important tenders. 

Do you have any country restrictions?

Apart from the sanctioned countries we offer our services all around the world. 

What are the benefits for suppliers? is it secure to use your credit line?

We have excellent underwriting and due diligence team, and all our products are asset backed and the institutions we work with are rated by moodys, fitch and S& P. 

Default are covered by our banks and institutions. 

What is your due diligence process?

For due diligence, we require your KYC,  Incorporation details, Director’s country ID, Shareholder pattern, latest ITR and 3 months bank statement. 

Due Diligence will be processed during the application process. 

What is Import Finance?

Import finance is utilized in every international trade to cut risks and reduce nonpayment risks. Trading globally means you have to be rich in capital, you have to be a skilled negotiator to form open account terms, But it doesn't work that way. Open account is...

Difference between banks and ITF’s trade finance line of credit

Understanding Trade Finance Hola Folks, Have you ever wonder how the supply chain works? or else how project contractors execute their construction or building a new bridges! Even if companies work together for more than a decade still they don't rely on payment...

Case study: Bid Bond for Water Treatment plant manufacturer

An Engineering, Procurement and Construction company in short (EPC) specialized in developing Water treatment equipment approached us to secure a bid bond (tender guarantee) to participate in the middle eastern government tender, where our applicant is the participant...

Welcome to International Trade Finance

Hello World, Greetings!!  We are happy to announce that we have initiated to write a blog on our ITF website which shows commitment towards the trade finance industry. Our upcoming posts would be consist of news and information related to global trade, fintech,...