Quoting from [Oneuni]:


Enough Talking about  Payment  ? 


now financing !  every traders love that : Finance



Can  a  bank financing the L/C  and or Invoice ? 


how and what to do with that ?

For Export transaction here's 2 Famous financing facility that provided by the banks :
A. Negotiation line, Facility that will purchase your export documents under LC and
B. Pre-export financing, Facility that will fund your production for export, usually they ask for collateral like fixed asset, warehouse receipt, stocks and inventory or personal guarantee. the banks will not financing your export with only LC as a sole collateral. because of some risks unvocered regarding effectiveness of LC.

Here is maybe some consideration of Banks when deciding to financing with LC as Collateral :

1. Authenticity, Terms and Condition of the LC

2. Ability of Exporter in order to presenting complying documents

3. qualification and bonafidity of Issuing bank or any confirming bank

4. Country Risk of Issuing Bank

5. Others

if you are lucky, then the banks will finance your export transaction, it' will be under reserve and with recourse condition.


But Recently, many banks try to give financing for Export Import Invoice, with using their worldwide network and branches customers.

Rgds