Trade Finance products are specialised bank products designed to reduce the risks and uncertainties associated with commercial transactions, thus, facilitating trade. To compete successfully in the ever-expanding international trade arena, which requires the financial ability to minimize the buyer's cost, maximise the seller's offer, and manage the commercial, political and currency risks on both sides.
Trade Services and Trade Finance
Our Trade Services Advantages
- Wide range of domestic, export & import services and trade financing solutions
- Issuance of Letters of Credit and Bank Guarantees
- State-of-the-art image based processing system for a shorter turnaround time
- Regular E-mail alerts on your trade transactions status
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Selling your products and services in the global market need not be a painstaking process for you anymore. With Commercial Bank handling all of your export related transactions - its no more hassles! With faster credits through our global network of branches and access to collection information through E-mail alerts and a dedicated Trade Toll Free Number - you have greater control over your foreign receivables. Through a dedicated and expert Trade and Forex Advisory desk - we can structure and customise solutions for your specific requirement.
a. Export Bill Collection Services
By routing your Documentary Collections through Citibank you can now enjoy faster credit of your export credits through our global network of branches in more than 100 countries. With easy access to collection information details - you can now be in complete control of your foreign receivables!
b. Export Packing Credit (Pre-Shipment Finance)
We provide pre-shipment finance in the form of Export Packing Credit to manage your cash flows for the purpose of procuring raw materials, manufacturing, processing, transporting, warehousing, packing, shipping of goods, etc. You can avail this facility in Indian Rupees (Packing Credit) or in a foreign currency (PCFC - Packing Credit in Foreign Currency). Please walk in to the nearest branch or call your Relationship Manager to know more!
c. Export Bills Negotiation (Post-Shipment Finance)
We also negotiate your Export Bills Drawn under a Letter of Credit (LC), if the documents submitted comply with the Terms of the LC. This offering is in the form of a loan advanced to you to bridge the working capital need that may arise after shipping of goods to the date of realisation of your export proceeds. And this comes to you at a very competitive rate of finance!
d. Export Bill Purchasing and Discounting (Post-Shipment Finance)
If your Export Bills are not drawn under a Letter of Credit (LC) - we can advance an amount against sanctioned credit limits immediately after shipment of goods.
e. Export LC Advising
With an international presence in more than 100 countries and a strong correspondent bank network (more than 6,500 banks globally) we advise LCs for customers and non-customers across the country. Once received these LCs are advised to you without any delay and under committed time frames. Through our expertise we can explain complex LC terms to help you assist in error - free document preparation.
f. Export LC Confirmation Services
To protect your export receivables against the political climate or credit risk of the buyer's country, we offer LC Confirmation Services. Once confirmed you are assured of payment subject to your submission of non-discrepant documents irrespective of non-payment by LC opening bank.
g. Export Document Scrutiny Services
A small discrepancy in your export document can lead to refusal of document acceptance or delayed payments resulting in financial losses for you. This can adversely affect your cash flows and profits. With a specialist team of trade exports scrutinising your export documents and a rigorous process of checking you can be assured of not only saving substantially on the discrepancy fee of foreign banks but of any risks that may arise in case the documents get rejected.
Being a privileged customer of Commercial Bank you now have access to the complete suite of import services. By being a leading bank of international repute, we can offer you customised solutions to suit your business requirements. Our wide presence helps us deliver products in a speedy and efficient manner and also helps in simplifying and faster query resolution, responses to follow ups and reimbursements.
a. Import Letter of Credit
A letter of credit represents an unconditional undertaking by the Issuing Bank to pay/accept to pay to the beneficiary on fulfillment of stipulated documentary conditions. Hence, the creditworthiness of the bank replaces that of the buyer.
Citibank issues, advises, amends, confirms and pays sight and time letters of credit through its extensive network of branches and correspondent bank relationships.
We boast of a high level of expertise in providing advisory services in the structuring of Letter of Credits to suit the specific requirements of your transactions. Our trade team is well equipped to structure solutions for a variety of purchase requirements, ranging from simple LCs to revolving LCs, to Standby Letters of Credit.
b. Import Payments Services
With us you can be assured of a prompt and efficient handling of your Import Collection Documents, direct import documents or advance payments. Our team of experts will carefully scrutinise the documents and assist you in effecting payments for the goods purchased from abroad.
With our trade advisory services you can now be advised on various provisions that exist in FEMA relating to such payments and effecting faster and efficient remittances to your supplier.
c. Supplier and Buyer's Credit
We can arrange for financing your imports through a buyer's/supplier's credit at very competitive rates of interest. This is a foreign currency loan and interest rates are typically linked to the LIBOR rate of the currency of finance.
A bank guarantee is an undertaking by the Bank on behalf of its client to pay a certain sum of money to a beneficiary in case of default by the applicant in meeting certain Terms and conditions of an agreement and contract.
Types of Guarantee that are available are:
- Financial Guarantee: These guarantees are irrevocable undertaking by the banks to guarantee repayment of financial obligation
- Performance Guarantee: Such guarantees are an irrevocable undertaking to make payment in the event the customer fails to perform a non-financial contractual obligation
- Shipping Guarantee: These kind of guarantees are issued in favor of the shipping company to enable importer to take delivery of goods without shipping documents
You can now have BGs issued through us with 100% cash collateral or against an existing line with us.
- Collection of domestic purchase or sale documents.
- Extensive tie up with local banks.
- Faster realisation of payments.
This webpage is intended only for Citibank customers. Any and all facilities/services/offers mentioned on this webpage are subject to specific Citibank N.A. Terms and conditions. You are advised to contact Citibank N.A. to obtain and understand the applicable Terms and conditions and/or any questions you may have with regard to any information contained on this webpage. Citibank N.A. does not guarantee the accuracy, adequacy or completeness of any information on this webpage and is not responsible for any errors or omissions or for results obtained from the use of such information as contained on this webpage. Citibank N.A., Citigroup and/or any of their affiliates/associates have no liability whatsoever to any person on account of the use of information provided herein and the said information is provided on a best-effort basis. Citibank has the right to modify or drop facilities/services/offers mentioned on this webpage at any time without assigning any reason whatsoever.
All products and services are at sole discretion of Citibank and subject to RBI/FEMA/SEBI/other regulatory guidelines issued from time to time