Trade Finance

Sharia-Compliant Solutions for 
Global Trade Transactions

BisB offers a comprehensive suite of Sharia-compliant trade finance products and services designed to facilitate and secure your import and export activities. Our offerings include letters of guarantee, import and export letters of credit, documentary collections, supply chain finance, and specialized finance facilities.

Securing Your Business Commitments

We provide various types of guarantees to meet your tendering and contracting needs:

• Tender Guarantee: Assures the project owner that the bidder will honor their bid and sign the contract if selected.
• Performance Guarantee: Ensures the contractor will complete the project according to the agreed terms and conditions.
• Advance Payment Guarantee: Protects the buyer if they make an advance payment to the seller before receiving goods or services.
• Retention Guarantee: Allows the contractor to receive full payment by replacing the cash retention with a bank guarantee.
• Payment/Financial Guarantee: Assures the beneficiary that a specific financial obligation will be met by the guaranteed party.
• Customs Guarantee: Enables importers to clear goods through customs before paying applicable duties and taxes.

Facilitating Secure Import Transactions

BisB acts as an issuing bank, guaranteeing payment to your suppliers against complying documents. Additional solutions include:

• Letter of Credit Refinancing: Provides financing to the importer after the LC has been issued, helping manage cash flow.
• Usance Payable At Sight (UPAS) Letter of Credit: Allows the exporter to receive immediate payment while the importer enjoys extended credit terms.
• Standby Letter of Credit (SBLC): Acts as a guarantee of payment, typically used in ongoing business relationships or for large transactions.

Ensuring Payment for Your Exports

As an exporter, a letter of credit favoring your business provides an undertaking and comfort to receive payment against shipment of goods, provided shipping documents comply with terms and conditions of the letter of credit. Services include:

• Letter of Credit Advising: Informing the exporter about the terms of the LC issued by the importer’s bank.
• Letter of Credit Negotiation: Examining documents presented by the exporter and providing payment if they comply with LC terms.
• Letter of Credit Confirmation: Adding our guarantee to the LC, assuring payment to the exporter even if the issuing bank fails to pay.

Streamlining Payment Collection

For transactions where letters of credit are not utilized, documentary collections offer a cost-effective alternative with limited risk mitigation:

• Documentary Collection Refinancing: Providing financing against documents under collection, allowing importers to obtain funds before the due date of the collection.
• Avalisation: Guaranteeing payment of a bill of exchange, enhancing the security of the transaction for the exporter.

Optimizing Cash Flow for Buyers and Suppliers

Our Supply Chain Finance solutions help businesses manage their working capital efficiently:

• Invoice Prepayment: Buyer-centric solution where the bank pays suppliers early at a discount, with the buyer paying the full amount to the bank at the original due date.
• Claim Repayment: Suppliers sell their invoices to the bank, receiving immediate payment while buyers maintain longer payment terms.
• Advance Against Invoice: Providing an advance to the supplier against specific invoices, with the supplier retaining ownership and responsibility for collection.