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Trade Finance

     Many things influence the economic performance of your company. Collaboration with a bank you can always count on is one of the most important. With our largest branch network in Cambodia and cutting-edge information technology, BIDC Bank can help your business succeed.
Our goal is to provide complete solutions that are suited to your company's specific needs in all financial sectors.
BIDC BANK is now providing the following Trade finance services as below detail:

1. LETTER OF CREDIT

     A letter of credit, sometimes known as a "credit letter," is an assurance from a bank that a buyer's payment to a seller would be received on time and in the exact amount. The bank will be forced to cover the full or remaining cost of the transaction if the buyer is unable to make a payment on the acquisition. There are many benefits for both importer and exporter as below:

Benefit for Importer
Easier to do business with unknown sellers
A cost-effective and secure way to trade internationally
Ensures that suppliers have met your terms and conditions before you pay them
Strengthens your negotiating position by offering a guaranteed payment and it
Helps importer to limit the risk from the exporter.
Benefit for Exporter
Our export trade specialists check the authenticity of Documentary Credits (DCs) issued to you
Allows you to start arranging shipment quickly
Ensures that L/C reaches you within 24 hours of receipt from the issuing bank
Can received money in advance after shipment and presented the comply documents ( Discount LC)

2. DOCUMENTARY COLLECTION

     Documentary collection is method of trade finance in which an exporter's bank forwards documents to an importer's bank and collects payment for shipped goods. It is a procedure by which the exporter's bank receives funds from the importer's bank in exchange for documentation tracking the shipped goods. It is a trade transaction in which exporters authorise their bank to serve as a collection agent for the payment of goods shipped to the purchaser.
There are two types of Documentary collections:
Documents against Payment Collection (D/P): an arrangement in which an The importer receives the delivery documents only against payment,
Documents against Acceptance Collection (D/A): an arrangement in which an exporter instructs a bank to discharge shipping and title documents to an importer only if the importer accepts the accompanying bill of exchange or draft by signing it.

Benefit for Importer
Enables you to receive goods before payment
Eliminates the need for credit facilities if no bank finance is required on payment
Reduces payment risk for your supplier at minimal cost to you
Gives you access to goods without delay

Benefit for Exporter
Collection is a straight forward and less expensive mode of settlement.
Payment is usually quicker compared to open account.
Title to the goods can be controlled by the bank until buyer’s payment or acceptance of the bill of exchange

3. BANK GUARANTEE

     A bank guarantee is when a bank provides surety and guarantees on behalf of its customers for certain commercial obligations that are subject to particular restrictions. Lending institutions offer a bank guarantee, which pledges to replace a customer's loss if he or she defaults on a loan. There are various types of Bank Guarantees as follows and each is used for a specific type of transactions:
Bid Bond Guarantee.
Performance Guarantee
Advance Payment Guarantee
Warranty Guarantee.
Counter Bank Guarantee
Benefit for Importer
Guarantee by bank assuring to pay the amount
Give the parties to a transaction a great deal of flexibility in negotiating contract terms over geography and currency
Benefit for Exporter
Security of cash flow
Protect against certain kinds of risk when doing business abroad
Reduces the risk of non-payment by foreign buyer
Our Fees Charge and Commissions

NO TYPE OF SERVICE FEE CHARGE CABLE
1 Issuance of Import LC  0.15%/month(Min:$40.00) $          40.00
2 Settlement Import LC 0.125%/Amount (Min: $30.00) $          20.00
3 Advice Export LC  $30.00  $                 -   
4 Settlement Export LC 0.15%/Amount (Min:$50.00)  $                 -   
5 Advice Inward Bill Collection  $30.00  $            20.00
6 Settlement Inward Bill Collect 0.20%/Amount (Min:$30.00)  $            20.00
7 Handling outward Bill Collection  $30.00 + Courier charge  $                 -   
8 Settlement Outward Bill Collection  0.15%/Amount (Min:$50.00)  $                 -   
9 Issuance BG  0.2%/Year (Min:$100.00)  $                 -   

Note: You must have an account with BIDC Bank in order to use our Trade Finance service. For further information about our service needs, please contact our local branch or our Call Center.

 

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