Working Capital and Trade Solutions*

Overdraft Facilities

Short Term Finance Facility

* Subject to internal Credit Approvals & Guidelines

Trade Finance**

I. Trade Finance

A flexible short term borrowing facility linked to a specific trade (import/export) transaction.

A. Import and Export Finance: Trade Loans are an important and well established mode of financing and is particularly well suited to wholesalers and manufacturers. Trade loans can be used either for regular one off purchases of goods and raw materials (import loan) or in the case of an export loan, financing can be provided until payment from the sales of goods is received.
B. Export Refinance: The Export Refinance (ERF) Scheme was introduced by the State bank of Pakistan with an aim to boost exports of non-traditional items in Pakistan. The scheme is bifurcated in two parts i.e. Part I (where finance is given, on a case to case and on a pre and post shipment basis) & Part II (where an exporter may avail the export finance limit based on the previous years export performance)¹.
C. FCY Import* & Export Loans under FE-25:** These are trade loans extended in foreign currency.

II. Letter of Credit Discounting:

By discounting a Letter of Credit you can obtain money due to you under a Letter of Credit. This service is for exporters making sales on credit terms and use Letters of Credit as the means of settlement. Letter of Credit Discounting will improve cash flow positions because you will receive the payment from us once your buyer has accepted the necessary documents. By discounting your Letters of Credit you will not have to wait until a future date to receive your payment.

**Subject to internal Credit approvals & guidelines
***FCY Import Loans will be considered on a case to case basis

Trade Services

Making trade more efficient, easier and safe to help you trade confidently.

A. Bonds & Guarantees: To help you meet your buyer’s or supplier’s demands we can issue a range of bonds and guarantees. When selling overseas a bank guarantee or bond is a common request. The guarantee provides a means of securing performance or other obligations set out under the terms of a contract. Here Barclays will act as the guarantor for the seller. Alternatively, when availing services or purchasing goods, the seller may require a guarantee to secure receivables. This is common for utility companies across the country that supply to manufacturing facilities. Here Barclays will act as the guarantor for the buyer and will pay the supplier a specific sum, usually upon receipt of a written demand, for the goods and/or services provided.

B. Letters of Credit

Export Letters of Credit: This is a conditional payment guarantee for you, issued by your buyer's bank on their behalf. Payment is conditional upon presenting all compliant documents. An Export Letter of Credit enables an exporter to substitute buyer credit with that of the buyer's bank, providing greater assurance of payment.

We can also arrange to provide confirmations should you have concerns about your buyer's bank or your buyer's country. By adding our confirmation, we will have added our assurance and acceptance to your Letter of Credit.

Import Letters of Credit: This is a conditional payment guarantee issued by Barclays on your behalf. It secures payment to your supplier provided they conform to the timeframe and documentary terms set forth under the Letter of Credit. This investment allows you to negotiate more freely and on more favorable terms such as longer credit terms or a reduction in costs.

We can also arrange to provide confirmations should your supplier have reservations about the LC issuing bank or with country risk. By adding our confirmation we will have added our acceptance to you Letter of Credit.

C. Collections – Get faster payments for your exports; Assure to the quality of your imports.

Export Collections: Allowing you greater security for payments against your exports; export collection facilities provide reassurance, particularly when dealing with new trading partners and enable you to predict and manage cash flows more effectively. Here, you will need to send a set of documents relating to your exported goods to us and we will forward these to the importer’s bank along with a collection schedule to receive payment from the importer's bank. You can the request payment immediately either at sight (when you present the collection) or on an agreed date in the future. Import Collections: This trade service gives you greater assurance of the quality of your imports. Your supplier will send us a set of documents allowing you to access the traded goods. This usually comes via their bankers, accompanied by a bill of exchange and an invoice drawn on your business. As per the exporter's request you will then pay at sight (when documents are presented) or at an agreed date in the future.

D. Open Account Trading More and more corporates have shifted from trading under Doc Credits to trading on an Open Account Basis. It is now estimated that over 80% of global trade is conducted on an open account basis . Led by large corporates, this form of trade saves costs and time and is being adopted by more and more corporates across the world. Our in country trade specialists are here to facilitate the timely end-to-end execution of your Open Account transactions.

E. Dedicated SBP DESK From aiding in approvals for international remittances to the registration of agreements, the SBP Desk will be available for you. Our in country trade specialists and dedicated relationship managers are available to help provide information, guidance and to structure your trade transactions more effectively.

Other Services

MI Services

Daily Statements (also available via MT 940 and 942)

For more information related to our products, services and corporate solutions feel free to call us at Telephone: +9221-111-105-555.

Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is a public limited company registered in England and authorised and regulated by the Financial Services Authority (FSA No. 122702). Registered Number is 1026167 and its registered office 1 Churchill Place, London E14 5HP. Barclays.com