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Trade Finance
CTBN provides various types of Fund and Non Fund based Facilities as well as other Trade related services.
Import Business
· Letter of Credit
CTBN issues import Letter of Credit, an undertaking to make payment for goods and or services provided by the supplier / exporter within a stipulated time against documents with complying presentation, to facilitate import trade business to its customer. The LCs shall be sight or usance.
· Documentary Collection (DAP or DAA)
CTBN facilitates import business through Documentary Collection. In this process, CTBN receives the documents from the Supplier / Exporter through their banks or directly and shall handover the documents to the importer against payment or acceptance.
· Advance Payment
CTBN facilitates import business through Advance Payment to import good and or services. In this process, the exporter shall ship the goods and or services after receiving the advance payment.
· Trust Receipt Loan
CTBN grants Trust Receipt Loan to its customer to release payment under Letter of Credit.
· Import Loan
CTBN grants Import Loan to its customer to make payment to the exporter under Documentary Collection / Advance Payment.
Export Business
· Export Letter of Credit
CTBN offers service of advising Export Letters of Credit issued by buyers/ importers’ bank. The advising covers the authenticity of the credit. CTBN, in this process, checks the content of the LC and guides the exporter /beneficiary about the related provision of the regulator.
· Cash Against Document (CAD)
CTBN issues CAD Certificates to the Custom Office at the request of its customer who wishes to ship the goods to its exporter without Export Letter of Credit and Advance Payment.
· Documents Collection Service
CTBN facilitates documentary collection service under Letter of Credit and CAD in which CTBN sends the exporter’s documents / bills to the importer’s bank / LC issuing bank and to credit exporter’s account upon receipt of the payment. In this process, the exporter ships the goods to importer and submits the documents as per Letter of Credit / contract under CAD to CTBN and CTBN will send the documents to the importer’s bank / LC issuing bank. The importer’s bank will remit the payment to CTBN upon paid by the importer. In case of usance documents, the importer’s bank will send the payment on maturity of the bill.
In case of Letter of Credit, CTBN will check all documents for completeness and accuracy as per requirement stated in the Letter of Credit and submits the documents to the bank that issue the Letter of Credit.
In case of CAD, CTBN will check all documents for completeness and accuracy as per CAD certificate and submit the documents to the corresponding bank as requested by the exporter.
Export Loan
Pre Shipment Loan / Packing Credit
CTBN provides Export Loan to its customer against export order / CAD / Export Letter of Credit to meet working capital requirement. The realization of export proceeds will subsequently be used to pay off such loan.
Post Shipment Loan / Bills Purchase / Bills Discounting
CTBN purchases / discounts the Export Bills under CAD / Contract / Letter of Credit. The realization of export proceeds will subsequently be used to pay off such loan.
Bank Guarantee
CTBN, on behalf of its customer, issues all the type of Bank Guarantees, an undertaking to make payment to the beneficiary upon claim made by them within stipulated time, to fulfill the contractual obligation between the applicant and the beneficiary. The guarantees may be in local currency or in foreign currency. CTBN also issues such guarantee against Counter Guarantee of local or foreign bank. Similarly, CTBN also offers to issue Counter Guarantee to other corresponding bank for further issuance of guarantee.
