A Structured Trade Loan covers the financing requirements of the supply chain, starting from the time when the goods are purchased through to when they are sold. This type of loan is ideal for companies who are importing commodities, raw materials or parts to be modified and sold on to a confirmed buyer, but who don’t have the cash flow to fund the entire commercial transaction.
Financing of this type can also be used on occasions where the enterprise needs time to sell imported stock.
Short Term Trade Loan
QNB offers Short Term Trade Loans to its Corporate customers for the purpose of refinancing their payment obligations arising from the reimbursement obligation of documentary letters of credit, standby letters of credit, bank guarantee or similar instruments.
In pre-export financing, the exporter (seller) has a firm contract of sale but needs financing to acquire and prepare the goods for shipment. Manufactured or processed goods as well as readily marketable commodities (e.g. wheat, sugar, corn, coffee, copper, silver) may be financed.
QNB can provide both standard and structured solutions to its customers to provide Working Capital finance for this production or resale cycle.
In Post-Export Financing, the exporter (seller) needs financing for the period between the shipment of the goods and receipt of payment from the importer (buyer). The exporter can ship under different payment terms (e.g. open account, documents against acceptance or documents against payment, letters of credit).
QNB can provide standard and structured solutions to its customers to provide Working Capital finance to cover the liquidity needs between the period of export and receipt of payment for the goods and services.
The importer (buyer), who purchases goods under a sight letter of credit or under other payment terms (e.g. open account), may need financing to meet its import payment obligation.
QNB can arrange standard and structured loan solutions to its customers to provide the required liquidity between the period of payment for the imported goods. This loan can be provided either for a defined short period (e.g. 90 days) or until the sales cycle is completed and payment is collected. Under the import financing arrangement the export proceeds are normally assigned to the bank.
Trade Advances for Financial Institutions
QNB Trade Advances service offers the advantage of short-term trade advances to Financial Institution customers for the purpose of refinancing payment obligations in respect of confirmation of documentary letters of credit, standby letters of credit, bank guarantees, performance bonds, acceptance or guaranteeing of bills of exchange or promissory notes or any other similar negotiable instrument.