Financial solutions for companies that operate in foreign trade, with import and export.

TRADE FINANCE is the set of instruments and financial products to enable and facilitate international trade and finance the growth of companies. TRADE FINANCE allows importers and exporters to access many financial solutions that can be adapted to their situation and, often, several products can be used together to help ensure that the transaction takes place easily, safely and economically.

• Facilitates business

• Improves cash flow

• Enables financial resources / working capital

• Reduces costs

• Reduces the risk associated with international trade

Understanding TRADE FINANCE

The function of TRADE FINANCE is to eliminate the payment risk and the supply risk with adequate cash flow. It provides the exporter with the guarantee of receipt according to the contract and the importer with the availability of resources to fulfill the order.

Related parties

• Banks

• Importers and exporters

• Insurers

• Export credit agencies and service providers

TRADE FINANCE is different from conventional financing. Conventional financing is used to manage liquidity, but TRADE FINANCE goes further, being used to protect against the risks inherent in international trade, such as exchange rate fluctuations, political instability, non-payment issues or the credibility of one of the parties involved.

TRADE FINANCE Solutions

EXCHANGE READY

Foreign exchange contracts settled on the same day, or within two days of closing the transaction.

FOREIGN EXCHANGE

Exchange contracts for settlement on future dates, registered at the time of closing.

ACC - ADVANCES ON EXCHANGE CONTRACTS

Advance on export exchange rates, pre-shipment, to promote production against orders from abroad.

ACE - ADVANCES ON DELIVERED EXCHANGE

Anticipation of export exchange rates after shipment.

NCE - EXPORT CREDIT NOTE

Advance on export exchange rates, pre-shipment in local currency.

CREDIT LETTER

It guarantees payment to the exporter and guarantees receipt of the goods to the importer, provided that certain conditions are met. It can be in cash or in installments.

FORFAITING

Purchase of export receivables, backed by a discount on a negotiable financial instrument, such as a letter of credit, bill of exchange (Bill of Exchange) and / or insurance coverage.

INTERNATIONAL FACTORING - EXPORT

The Bank buys and pays the export exchange rates in cash, directly charging the importer. Therefore, the operation includes the services of: prepayment of receivables, coverage of credit risk abroad and international collection of receivables.

FINIMP - FINANCING IMPORTS

Foreign currency import financing line. The exporter receives the payment in cash and the importer pays the term to the Bank.

INTERNATIONAL FACTORING - IMPORT

Product supplied to the corresponding collection and credit risk coverage banks on receivables with Brazilian drawee. It supplies the Brazilian importer with a line financed by the exporter.

NDF

Exchange rate derivative, in which settlement takes place by the difference between the contracted rate and that of the maturity date. It allows locking the future price of foreign currency commitments without being linked to an exchange closing.

EXPORT AND IMPORT LOCK

Foreign exchange contract that allows you to lock the price for settlement of the exchange at a future date with the possibility of early settlement.

EXCHANGE OPTIONS

Derivative that allows you to buy or sell at a certain price, upon payment of a premium.

SWAPS

Derivative that allows the exchange of indexes of a specific commitment.

TRADE FINANCE benefits

TRADE FINANCE has become an important tool for companies to improve their efficiency and increase revenue.

Reduces risk

TRADE FINANCE helps importers and exporters to build trust and reduces the risk associated with global trade, reconciling the different needs of exporters and importers. Ideally, an exporter would prefer the importer to pay in advance for an export shipment to avoid the risk of payment by the importer. However, if the importer pays the exporter in advance, he runs the risk of not receiving the goods.

The common solution for this case is for the importer's bank to provide a letter of credit to the exporter's bank. The letter of credit guarantees that, once the issuing bank receives proof that the exporter has sent the goods and the terms of the contract have been fulfilled, it will issue payment to the exporter.

Improves cash flow and operations efficiency

TRADE FINANCE helps companies obtain financing to facilitate business. It allows companies to receive a cash payment based on accounts receivable in the case of forward transactions. As a result, cash flow is improved, since the buyer has means to guarantee receipt and the importer knows that the goods will be sent.

With this, TRADE FINANCE guarantees less delays in payments and remittances, allowing importers and exporters to manage their business and plan their cash flow more efficiently.

Higher revenue and earnings

TRADE FINANCE allows companies to increase their business and revenue through foreign trade. For example, a company that can make a sale with an overseas company may not be able to produce the goods needed for the order.

However, through TRADE FINANCE, the exporter can place the order. As a result, the company gets new business that it might not have had without the creative financial solutions provided by TRADE FINANCE.

Reduce the risk of financial difficulties

Without TRADE FINANCE, a company may not be able to pay and lose an important customer or supplier with immediate and long-term implications for the company. Having options such as revolving credit facilities and accounts receivable billing can not only help companies to carry out international transactions, but also help them in times of financial difficulties.

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