JSCB «Kapitalbank» provides a wide range of trade finance services

Trade Finance — this is a set of banking products and services for servicing trade contracts to arrange settlements, finance transactions and control cash and goods flows on the part of the servicing bank.

Trade finance operations allow our clients to:

• use trade finance instruments to access alternative sources of lending in the form of deferred payments or long-term financing, which is important during a crisis; 

• minimise the risks associated with non-delivery of goods; 

• reduce the share of advance payments; 

• minimise the costs of the foreign trade transaction; 

• increase business transparency and expand access to global markets for goods and services. 

MAIN TRADE FINANCE INSTRUMENTS OFFERED BY THE BANK

Letters of credit:

• Confirmed letter of credit with post-financing; 

• Confirmed letter of credit with discounting of the deferred payment; 

• Direct (unconfirmed) letter of credit with deferred payment. 

Bank guarantees and counter-guarantees / standby letters of credit:

• Payment guarantee; 

• Advance payment repayment guarantee; 

• Loan repayment guarantee. 

Targeted loans insured by export credit agencies (ECA).

Letter of credit — a monetary obligation of the bank, accepted on the instruction of the buyer-client, to make a payment in favour of the seller after the latter presents the documents provided for by the terms of the letter of credit.

Unsecured letter of credit — a letter of credit without cash cover in the currency of the letter of credit. In many countries, unsecured letters of credit are not only a standard settlement method for foreign trade contracts but also an effective instrument for financing transactions.

Deferred payment letter of credit (Deferred payment L/C) a documentary letter of credit under which payment is made on a future date determined in accordance with the letter of credit. This type allows the importer to obtain a deferred payment, while the exporter can discount the documents if they comply with the terms of the letter of credit, thereby receiving funds upon presentation.

If it is not possible to obtain a deferred payment from the exporter (a commercial loan under the trade contract), JSCB «Kapitalbank» offers importing clients the opening of letters of credit with post-financing.

Post-financing — a form of attracting financing from foreign credit and financial institutions, in which, under the letter of credit being opened, the financing (executing) bank pays the exporter after the documents are presented in accordance with the terms of the letter of credit, with a subsequent deferral of payment for an agreed period.

Settlement scheme for a letter of credit with post-financing

* Confirming, executing, financing

1. Contract for the supply of goods (services).

2. Agreement on opening a letter of credit with post-financing.

3. Letter of credit in favour of the exporter.

4. Delivery of goods (services).

5. Documents under the letter of credit.

6. Payment under the letter of credit, deferral of repayment of obligations under it (financing).

7. Deferral of repayment of obligations under the letter of credit.

8. Repayment of obligations under the letter of credit.

9. Repayment of financing obligations.
   

Standby letter of credit — a documentary letter of credit that the beneficiary may use only if the obligations under the transaction it relates to are not fulfilled. 
A standby letter of credit acts as a guarantee if contractual obligations are not fulfilled. Standby letters of credit originally developed because in the USA the law restricted banks' rights to issue guarantees.

Bank guarantee — an obligation of the guarantor bank, issued on the instruction of the client (and at their expense), to pay the beneficiary of the bank guarantee a sum of money in accordance with the contract between the client and the beneficiary. Payment is made upon presentation of the beneficiary's written demand and the additional documents specified in the bank guarantee.


OUR IMPORT FINANCING CAPABILITIES

SHORT-TERM FINANCING (UP TO 1 YEAR)

MEDIUM-TERM FINANCING (FROM 1 TO 3 YEARS)

LONG-TERM FINANCING (FROM 3 TO 5 YEARS)

Basic requirements for the Borrower:

• The place of business and registration is in the regions where Kapitalbank operates; 

• Availability of collateral; 

• No negative credit history and no cases of default on obligations.