Trade Facilities

Trade facilities are products used by companies to facilitate international trade and commerce. It allows easier cashflow for importers and exporters to transact business through trade. While helping to reduce the risk associated with global trade by reconciling the divergent needs of an exporter(s) and importer(s).

Products: Invoice Financing, Factoring, Pre-shipment, PO Financing

Up to S$1 billion per company
Processing time 2-4 weeks
Interest rates from 2% per year
Discount charge annual renewal

Trade Facilities

A letter of credit is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and/or services provided certain documents have been presented to the bank. These are documents that prove that the seller has performed the duties under an underlying contract (e.g., sale of goods contract) and the goods (or services) have been supplied as agreed. In return for these documents, the beneficiary receives payment from the financial institution that issued the letter of credit. The letter of credit serves as a guarantee to the seller that it will be paid regardless of whether the buyer ultimately fails to pay. In this way, the risk that the buyer will fail to pay is transferred from the seller to the letter of credit’s issuer. The letter of credit can also be used to ensure that all the agreed upon standards and quality of goods are met by the supplier, provided that these requirements are reflected in the documents described in the letter of credit.

Trust Receipt/Invoice Financing

Trust Receipt (TR) is a type of short-term import loan to provide the buyer with financing to settle goods imported under Letter of Credit where title of goods is held by the bank. Under a TR arrangement, the Bank retains title to the goods but allows the buyer to take possession of the goods on trust for resale before paying the Bank on TR due date. TR financing is applicable to goods imported under documentary credit.

Bankers Guarantee

A Banker’s Guarantee (BG) is a definite undertaking by the bank (guarantor) to pay the beneficiary a certain sum of money within a specified period if the applicant (principal) fails to fulfill his contractual or other obligations of an underlying transaction. It is normally used to secure either a financial or performance obligation of the principal.

Factoring

The business owner sells his receivables in the form of invoice to the factor, who makes an advance of 70-85% of the purchase price of the receivable amount. The factor collects the full amount from the customer in due course and pays the balance amount due to the business owner after deducting his commission and other charges. In “maturity” factoring, the factor makes no immediate advance on the purchased accounts, but sees to it that the customer pays the invoiced amount within the stipulated time i.e. on maturity. However, if the customer fails to make payment within the stipulated time e.g. 30 days, the factor makes payment to the client and proceeds to collect the payment from the customer.

Private Financing

In the event that you require more financing or no financial institution willing to take additional risk, we have our own private lender to customise a solution for your business. Thus, in One Suite Advisory, we have an array of solutions for you.

Contact One Suite Advisory, our best sme loan broker will help you to get small business loan, start-up business loan, sme business loans and funding in Singapore.

Trade Facilities

Trade Facilities

Trust Receipt/Invoice Financing

Bankers Guarantee

Factoring

Private Financing

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