In the normal course of business, especially for businesses involved in trading as well as cross-border, sometime the operational cash flow might be disrupted by some adhoc delays in cash inflow due to delay in repayment by customers. Therefore, these businesses usually have Banker Acceptance as their credit facility to facilitate their trading business, especially when dealing with first time customers or cross-border customers.
What is Banker Acceptance (BA) ?
Banker Acceptance is a short term debt financial instrument that is guaranteed by a commercial bank. It is much favoured in the international trade because it allows an importing business to issue a Banker Acceptance with a date beyond the delivery date, whilst it also allows the exporting business to receive a payment instrument in hand before delivering the shipment. Because the payment instrument is guaranteed by the bank, it provides reasonable assurance that there are no issues with collection.
With the ease of Banker Acceptance, and the low credit terms it offers, many businessman makes use of this benefits to assist with their operational trading. However, the commercial bank often has very rigid requirements with regards to the Banker Acceptance. For example, it has very strict timeline for settlement of the floating credit. Hence, it is imperative that the settlement be on-time, else the credit facility will be withdrawn immediately, and not subject to appeal.
How are we able to help?
Sometimes in businesses, we try our best to manage cash flow, but inadvertently some things are beyond control. Such as delays by the customers in processing payments which they had promised upfront, or there are excellent high margin deals which needed to pay in cash, as well as a delay in shipment or delivery. All these unforeseen circumstances may affect our cash flow planning. Sometimes we just need additional 2-3 days cash flow, to wait for these incoming cash flows to balance our operation. However, in Banker Acceptance, you are just not afforded that luxury. That facility will be terminated if you are late in settlement for even an hour.
We would be able to assist with quick approval, fast release, of high loan amount for Banker Acceptance loan. If you have an existing Banker Acceptance which is nearing to the due date, which you need quick short-term loan, we are the market leader in Banker Acceptance loan. Our loan approval process is especially quick, and money will be wired immediately to your account for settlement within 1-2 hours. Our interest rates for Banker Acceptance loan is very affordable and is based on daily rest. Our tenure is also dependant on the needs of our customer. If they are able to settle early, they would be able to reduce their total interest incurred.
Documents required to qualify for this BA financing, is merely a photocopy of the Bank BA agreement, for the financing to be assessed. This BA financing is mainly targeted for companies who may need quick short-term facilities to cover your existing BA agreement with a commercial bank that is reaching maturity period. Usually useful for companies such as property developers, companies involved in tradings as well as involved in international trading such as import and export.
This is one of the key Trade Financing Solutions in international trade market that is not to be missed. Please call us +601156222700 for more details. You may also be interested in our business loan for working capital or corporate loans for business expansion needs.