With our team of experienced business professionals and financial consultants, we provide Trade Finance Consultation to help you in international trade financing. Trade Finance Consultation is very important to help you grow your business by making you understand your short-term and long-term financial goals and how to make a plan to achieve them.

Two fundamental aspects are covered in trade financing: risk mitigation and liquidity. Any trade involves an element of risk chiefly that the seller will fail to deliver the goods or services or that the buyer will fail to pay for the goods received. In international trading, these risks are more as both the parties do not know each other personally. As result traders require some facilities to compensate for their risks. Sometimes sellers or suppliers face a time gap between the production cost and the payment to be received from buyers. This generates a liquidity gap, which is made greater by payment terms granting buyers a time in which to make payment. This period remains extended due to the longer time required for the products to reach the market. To fill this liquidity gap business persons require access to some credit facilities. MCG helps you to mitigate such types of risks with the easy access of banking facilities.

Guarantee means giving security. Bank Guarantees is a facility offered by the bank that ensures the buyers and sellers the security of guaranteed payment on behalf of their customers within certain regulations. The terms and conditions of documents should be examined as they may differ from bank to bank, and from transaction to transaction. Before the banks make the payment care should be taken to examine all conditions are satisfied. Such guarantees are generally used in business and personal transactions to safeguard third parties from financial losses. Bank Guarantee is similar but not the same as a Letter of credit. Bank Guarantees are mainly used in real estate contracts and infrastructure projects, while letters of credit are primarily used in international transactions.

Documentary Collections are similar to letters of credit and are less expensive. They involve using a bill of exchange also known as a draft in which the importer is required to pay the face value either at sight or on a specified future date. Documentary Collections help in reducing the payment risks on international trade transactions and should only be used in the following conditions: when the exporter and importer have a well-established relationship and the exporter is confident about the economical and political stability of the country.

MCG empowers people to understand their risks and manage them effectively to step ahead in business!!!
For more information visit our website: https://merchantcreditcorp.co/

Merchant Credit and Guarantee Corporation Limited (MCG)

Phone: +64 9 5244269
Email: [email protected]