Trade Finance

Trade Finance or trade finance services from Rabobank offer financing solutions for your business. This facility includes: Pre-shipment, post-shipment, and Trade Loan financing. Special product lines are made according to client requirements specifically aimed at the smooth processing of documents, payments and funding requirements.

Types of financial solutions for Rabobank Trade Finance and commodities include:


LC / SKBDN ISSUANCE
Letter of Credit (LC) is a method of payment in the form of an irrevocable written promise from the bank that is issued at the request of the Applicant for payment to the Beneficiary.
In the perspective from the type of tenor (payment period), LC / SKBDN can be in the form of Sight or Usance. The differences are as follows:

Benefits:
1. Certainty that the payment / acceptance is only carried out after the requirements of the documents listed in the LC / SKBDN are fulfilled.
2. Easiness to obtain financing for the purchase of goods for issued LC / SKBDN.
3. LC / SKBDN issued by Rabobank Indonesia can be easily accepted by customer partners for the good reputation of Rabobank is well known to world.


TRUST RECEIPT (TR)
Trust Receipt (TR) / Post Import Finance (PIF) is a short-term trade financing given to buyers / importers (customers) to finance the import or purchase of goods through LC / SKBDN issued by Rabobank Indonesia.

Benefits:
1. Customers can obtain financing facilities for the obligation to pay LC / SKBDN.
2. Rabobank Indonesia can provide financing with a flexible tenor (in accordance with the Customer's trading cycle)


INWARD COLLECTION (IC)
Inward Collection is one of the payment methods whereby the payment / billing instruction documents related to the Purchase / Import transaction will be billed through the Bank. In this case the Bank acts as an intermediary to receive documents and collect billing in accordance with agreed payment terms so that there is no promise of payment from the Bank in this transaction.

Documentary Collection can be in the form of Documents Against Payment (DP) where the document from the seller will be submitted to the buyer / importer after the buyer makes a payment or Documents Against Acceptance (DA) where the document from the seller / exporter will be submitted to the buyer / importer after receiving acceptance from the buyer of exchange or after the buyer issues a promissory note.

Benefits:
1. Customer has the option to make payments as long as the documents sent are as requested.
2. Handling documents for fast and reliable Documentary Collection (non LC) transactions


ADVICING LC / SKBDN
Advising Export LC / SKBDN is a forwarding service for an Export / SKBDN LC received directly from the Issuing Bank or received through another successor Bank (First Advising Bank) to be delivered to the Customer / Beneficiary.

Benefits:
1. With the Rabobank Group and Correspondent Bank network Customers can receive LC / SKBDN quickly.
2. The Rabobank Indonesia network in major cities will facilitate the forwarding of LC / SKBDN


TRANSFERABLE LC / SKBDN (TLC)
Transferable LC is the service of transferring or authorizing the seller's / first Beneficiary’s rights for a part or the whole LC value to the second Seller / Beneficiary. In this case the LC must specify that the intended LC is transferable.
Transferable LC can only be transferred once, to one or more Beneficiaries, where things that can be changed are as follows: LC value, price / unit, shipment date, expiration date, and period for presenting documents.

Benefits:
1. Customers can transfer the received orders to third parties.
2. The Rabobank Indonesia network located in major city cities can accommodate requests for LC / SKBDN from the Customer.


PRE EXPORT FINANCING (PEF)
Pre Export Financing is short-term trade financing provided for sellers / exporters to fulfill working capital needs. This financing can be based on LC / SKBDN approved by Rabobank Indonesia.

Benefits:
1. Customer can obtain financing for the preparation of the delivery of goods on the basis of the LC or SKBDN received.
2. Rabobank Indonesia can provide competitive financing and a flexible tenor (according to the trade cycle of the Customer).


NEGOTIATION UNDER LC / SKBDN (NLC)
Negotiation LC / SKBDN is a financing facility by Rabobank Indonesia for sellers / exporters after attaching documents to Rabobank Indonesia with "clean" terms and conditions (no irregularities - the documents provided must be in accordance with those requested in LC / SKBDN), there are RMAs and Banks limit with the LC / SKBDN issuing Bank

Benefits:
1. Customers can obtain financing after the delivery of goods on the basis of the LC / SKBDN received.
2. Rabobank Indonesia can provide competitive financing.


DISCOUNTING UNDER LC / SKBDN (DLC)
Discounting LC / SKBDN is a financing facility by Rabobank Indonesia for Sellers / Exporters after the Issuing Bank approves the documents that have been sent. Financing payments are paid at maturity of the LC document.
Benefits:
1. Customers can obtain financing after the delivery of goods on the basis of the LC / SKBDN received.
2. Rabobank Indonesia can provide competitive financing


OUTWARD COLLECTION SERVICE (OC)

In a Documentary Collection (Non LC), the Bank only acts as an intermediary to send documents and submit payments. So there is no promise to pay from the bank in this transaction. Rabobank Indonesia acts as a Remitting Bank with the Customer acting as a Seller / Exporter.
The seller's billing instructions can be in the form of Document Against Payment (DP) where the document from the Exporter (Exporter) will be submitted to the Buyer after the Buyer has made a payment, or Document Against Acceptance (DA) where the document will be submitted to the Buyer (Importer) after accept acceptances for purchases of the Bills of Exchange or after the Buyer issues a promissory notes.


GUARANTEE BANK / BANK GARANSI (BG)                 
Written Guarantee from the Bank to the recipient of the guarantee where the Bank binds itself to pay a certain amount of money (according to the amount / nominal written in the Bank Guarantee), if the requesting party does not fulfill its obligations to the recipient of the contract / written agreement between the requesting party and the party guarantee recipient.

Bank Guarantee Allocation:        
• Bid / Tender Bond
• Advance Payment Bond
• Payment Bond
• Performance Bond
• Retention Bond
• Custom Bond

Benefits:
For Applicants: Gaining the trust of the project owner so that they can streamline the business transactions.
For Recipients: Obtain an official guarantee from the Bank so as to reduce the risk if the requesting party does not fulfill its obligations. Bank Guarantees issued by Rabobank Indonesia will be easily accepted by business participants.


STAND BY LETTER OF CREDIT (SBLC)
SBLC is an irrevocable (cannot be canceled by one of the parties) written bank promise issued at the request of the Applicant to pay to the Beneficiary if the documents submitted are compliant with the requirements stated in SBLC, in which SBLC is protective against performance failure (Default)


RECEIVABLE FINANCING (A / R FINANCING)  
A / R Financing is a financing mechanism given to Suppliers / Borrowers (Suppliers) on the basis of sales bills that have been accepted by Principal Companies.
This loan is With Resource (Condition of financing where the Borrower will be responsible for paying the debt to the Bank if the Principal Company fails to fulfill its obligations). Suppliers receive credit working capital facilities based on the accepted invoice.
Benefits:
For Principal: Working capital financing for suppliers, to ensure timely delivery and can provide space for the increase in the volume of trading business and increase relations with suppliers.
For Suppliers: Cash wear cycles are getting faster so that cash flow positions are better, additional sources of funding, and opportunities to increase business volume with the Principal.


BUYER / DISTRIBUTOR FINANCING (DF)
Buyer / Distributor Financing is a financing mechanism that is given to customers related to financing their debt to the Supplier / Seller. In this case the Customer as the Buyer (Buyer), submits a loan to the Bank to obtain financing to the Bank to obtain financing (Funds) to pay the bill (Seller / Seller).

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