Documentary credit
Align the applicant, beneficiary, issuing/advising banks, amount, currency, expiry, shipment dates, presentation documents and payment maturity.
The document conditions must match the shipment and the supplier’s obligations.
TRADE & PAYMENT STRUCTURES03
The product has a route.
The capital needs one too.
Connect the buying cycle, payment obligations, documents and release conditions before proposing financing. A structure has to work for the actual parties.
COMMERCIAL STRUCTURINGFund the transaction.
Fund the transaction.
Understand the exposure.
Our role is to coordinate the commercial information and execution plan that counterparties, banks and other appointed providers need to assess a transaction.
Banking instruments and credit decisions remain with the issuing or financing institutions. Availability, pricing, collateral and conditions are assessed case by case; no approved facility is implied by an initial enquiry.
THE QUESTIONS BEHIND THE STRUCTUREOne chain of obligations.
One chain of obligations.
No missing handover.
Parties & authority
Who is buyer, seller, payer, importer, custodian and authorised signatory?
Cash timing
When are supplier, freight and destination costs paid; when are buyer funds actually collected?
Security & maturity
What support is issued, by whom, to whose benefit, for which amount and until when?
Control & release
Who controls the goods/documents, and which written condition authorises release?
Make the cash cycle visible.
Test how funding share, time and cost affect a cargo scenario.
THE ADVANTAGE IS IN THE CONTROL
Cargo visibility.
Cargo visibility.
Payment discipline.
The operating principle is clear: no release before the agreed payment or security condition has been verified and the written release authorised.
Payment verified
Confirm cleared funds or an accepted payment-security instrument through the agreed bank and approval channels.
Stock identified
Match the cargo, quantities, warehouse records and allocated buyer lots to the commercial file.
Release authorised
Release goods against the written instruction of the designated authority, after the agreed conditions are satisfied.
Delivery reconciled
Bring together delivery notes, stock movements, collection records and the final settlement position.
The seller, collection mandate, bank instrument, custodian and release authority are identified in each transaction’s documents. The controls are designed to reduce payment and handover exposure.
A BETTER BRIEF. A STRONGER START.
Let’s structure
Let’s structure
the next move.
Bring us the product, the quantity and the destination. We will work through the commercial and execution questions with you.
Start a trade enquiry
