Working Capital & Trade Finance

OUR SERVICES

Capabilities

Address:

Office - M10, WAFI Residence Offices, Al Razi Street, Healthcare City, Dubai

Email:

info@ayaanfin.com

Phone line:

+971-56-4130023

Opening hours

10am-7pm Mon - Fri

WORKING CAPITAL & TRADE FINANCE

Trade Finance in UAE Banks

Trade finance in the UAE, a major global trade hub, encompasses a variety of products and services designed to facilitate international trade transactions. Here are some common trade finance products available in the UAE:

THE PROCESS

1 Letter of Credit (LC)

1. Documentary LC: A bank guarantees payment to the seller upon presentation of specified documents.
2. Standby LC: A backup payment method if the buyer fails to fulfill its payment obligations.

Bank Guarantees

1. Bid Bond: Guarantees that the bidder will not withdraw the bid if selected.
2. Performance Guarantee: Ensures the contractor fulfills the contract terms.
3. Advance Payment Guarantee: Guarantees the buyer will be refunded if the seller doesn’t meet the contract terms.

3 Export and Import Loans

1. Pre-shipment Finance: Provides working capital for manufacturing goods before shipment.
2. Post-shipment Finance: Provides working capital after shipment but before payment from the buyer.

4 Export and Import Factoring

1. Export Factoring: Selling accounts receivables to a third party (factor) to improve cash flow.
2. Import Factoring: Similar to export factoring but for accounts payables.

Forfaiting

Selling Future Receivables: Exporter sells trade-related receivables at a discount to a forfaiter, transferring the credit risk.

6 Islamic Trade Finance

1. Murabaha: Bank purchases goods and sells them to the importer at a markup.
2. Salam: Advance payment for goods to be delivered in the future.
3. Istisna: Financing the manufacturing of goods according to the buyer's specifications.

7 Documentary Collections

1. Documents Against Payment (D/P): Documents released to the buyer upon payment.
2. Documents Against Acceptance (D/A): Documents released to the buyer upon acceptance of a time draft.

Structured Trade Finance

1. Structured Finance Deals: Tailored financing solutions for complex, high-value transactions involving multiple parties.
2. Commodity Finance: Financing structured around the production and sale of commodities.

9 Trade Credit Insurance

Protects Against Non-Payment: Insures businesses against non-payment by buyers due to commercial or political risks.

10 Supply Chain Finance

1. Supplier Finance: Allows suppliers to receive early payment, improving their cash flow.
2. Buyer Finance: Helps buyers extend payment terms while ensuring suppliers are paid promptly.

E-Trade Finance

Digital Platforms: Online platforms facilitating trade finance transactions, making the process more efficient.

When engaging in trade finance in the UAE, businesses should carefully consider their specific needs, risks, and regulatory compliance. It’s advisable to work closely with banks, financial institutions, and trade finance experts to choose the most suitable trade finance products for their transactions. Additionally, understanding the legal and regulatory frameworks, especially in international trade, is essential to ensure smooth and compliant trade finance operations

Working Capital & Trade Finance

OUR SERVICES

Capabilities

Address:

Office - M10, WAFI Residence Offices, Al Razi Street, Healthcare City, Dubai

Email:

info@ayaanfin.com

Phone line:

+971-56-4130023

Opening hours

10am-7pm Mon - Fri​

Trade Finance in UAE Banks

THE PROCESS

1

Letter of Credit (LC)

1. Documentary LC: A bank guarantees payment to the seller upon presentation of specified documents. 2. Standby LC: A backup payment method if the buyer fails to fulfill its payment obligations.

Bank Guarantees

1. Bid Bond: Guarantees that the bidder will not withdraw the bid if selected. 2. Performance Guarantee: Ensures the contractor fulfills the contract terms. 3. Advance Payment Guarantee: Guarantees the buyer will be refunded if the seller doesn’t meet the contract terms.

3

Export and Import Loans

1. Pre-shipment Finance: Provides working capital for manufacturing goods before shipment. 2. Post-shipment Finance: Provides working capital after shipment but before payment from the buyer.

4

Export and Import Factoring

1. Export Factoring: Selling accounts receivables to a third party (factor) to improve cash flow. 2. Import Factoring: Similar to export factoring but for accounts payables.

Forfaiting

Selling Future Receivables: Exporter sells trade-related receivables at a discount to a forfaiter, transferring the credit risk.

6

Islamic Trade Finance

1. Murabaha: Bank purchases goods and sells them to the importer at a markup. 2. Salam: Advance payment for goods to be delivered in the future. 3. Istisna: Financing the manufacturing of goods according to the buyer's specifications.

7

Documentary Collections

1. Documents Against Payment (D/P): Documents released to the buyer upon payment. 2. Documents Against Acceptance (D/A): Documents released to the buyer upon acceptance of a time draft.

Structured Trade Finance

1. Structured Finance Deals: Tailored financing solutions for complex, high-value transactions involving multiple parties. 2. Commodity Finance: Financing structured around the production and sale of commodities.

9

Trade Credit Insurance

Protects Against Non-Payment: Insures businesses against non-payment by buyers due to commercial or political risks.

10

Supply Chain Finance

1. Supplier Finance: Allows suppliers to receive early payment, improving their cash flow. 2. Buyer Finance: Helps buyers extend payment terms while ensuring suppliers are paid promptly.

E-Trade Finance

Digital Platforms: Online platforms facilitating trade finance transactions, making the process more efficient.

Unlock your business potential with innovative corporate banking solutions and expert guidance in the UAE

RESOURCES

Address : Office - M10, WAFI Residence Offices, Al Razi Street, Healthcare City, Dubai

Email : info@ayaanfin.com

Phone : +971-56-4130023+971-56-9044110

Opening hours : 10am-7pm Mon - Fri

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