What is Trade Finance?
It’s not only about lending but also about financial services that revolves around commercial transactions – domestic and international. Parties involved in the activity would be, among others, buyer, seller, bank, insurance company, export credit agency, shipping companies, etc.
Why Trade Finance?
Specific purpose of Trade Finance is to minimize risks involved in commercial transactions. The type and level of risk varies depending on quality of commercial relationship between buyer and seller, location of buyer and seller, currency used, method of delivery, regulation in buyer’s and seller’s countries.
Another purpose of Trade Finance is to support working capital requirement of buyer and or seller to better both parties’ cash flow.
What solution Bank Danamon provides?
Bank Danamon offers the following solution:
- Trust Receipt Financing – financing solution based on Letter of Credit issued by Bank Danamon
- Letter of Credit Negotiation – Letter of Credit's (LC) financing solution based on issuing bank’s risk
- Documentary Collection Financing – financing solution based on Documentary Collection for Bank Danamon’s drawer or drawee
- Discounting of Avalized Bills – financing solution based on avalizing bank’s risk
- Pre Shipment Financing – financing solution based on Letter of Credit or Purchase Order for Bank Danamon’s beneficiary or seller
- Invoice Financing for Buyer or Seller – financing solution based on invoices as underlying documents
- Letter of Credit under UCP 600
- Surat Kredit Berdokumen Dalam Negeri under Central Bank of Indonesia Regulation
- Documentary Collection
- Bank Guarantee
- Standby Letter of Credit under ISP 98
- Demand Guarantee under URDG 758
- Shipping Guarantee based on LC issued by Bank Danamon
- Bills Avalization based on Documentary Collection