Trade and Supply Chain Financing

QNB’s Global Trade Services specialists are always keen on discussing all available options with our clients in great detail, assisting them in managing their commercial counterparty risk and ensuring that they have adequate working capital to finance their cash conversion cycle.

Corporates are advised to contact the branch directly for availability of specific products and additional/detailed product features.

Letters of Credit

A letter of credit (LC) is an instrument issued by a bank by which the bank substitutes its obligation to pay the seller for the obligation of the buyer, on specified terms. LCs have many variations.

Documentary Collection

A documentary collection provides a buyer and seller with a measure of protection whereby a bank intermediates to exchange payment for documents of title to the goods. The collecting bank releases the documents, which normally allows the buyer to take delivery of the goods. The bank then wires the buyer’s payment to the remitting/seller’s bank for credit to the seller’s account.

Bank Guarantee

Bank Guarantees usually provide a type of monetary assurance to compensate a beneficiary in the event of noncompliance by the applicant with the terms of a contract. They are often used instead of cash payments in advance or as performance or bid bonds in international and domestic transactions. In a transaciton secured by a guarantee, the beneficiary looks first to the account party for payment before seeking payment from the bank. Guarantees can cover financial, performance, as well as trade-related transactions.
 

Export and Import Finance

Loans or advances are granted by financial institutions to exporters for financing the purchase, processing, manufacturing or packing of goods prior to shipment.  Export finance assistance is extended to exporters at various stages of exports. Our network of correspondent banks is extensive, allowing us to work directly with our customer's buyers' banks. With this worldwide network of correspondent banks, QNB can help our customers access almost any market.

 

QNB’s  Import Finance services offer a comprehensive array of  solutions that can help our customers  receive products quicker, reduce the amount of working capital they have to tie up, and ease their administrative burdens.

Supply Chain Finance

Supply Chain Finance is defined as the use of financing and risk mitigation practices and techniques to optimise the management of the working capital and liquidity invested in supply chain processes and transactions. Supply Chain Finance is typically applied to open account trade and is triggered by supply chain events. The visibility of underlying trade flows by the finance provider(s) is a necessary component of such financing arrangements which can be enabled by a technology platform.

Account receivable is a legally enforceable claim for payment held by a business entity against its customer for goods supplied or services rendered in execution of the customer’s order, and is recorded on the balance sheet. Such claims generally take the form of invoices raised by a business and delivered to the customer for payment within an agreed timeframe.

Accounts Receivable Discounting is a form of a flexibly applied Receivables Purchase in which sellers of goods and services sell individual or multiple receivables (represented by outstanding invoices) to a finance provider at a discount.