Do you know what Commodity Trade Finance is? Commodity Trade Finance is the method of financing the import and export of all kinds of goods, including energy (petroleum products, natural gas), metals (iron ore and steel products), and agri-food products (rice, wheat, sugar, cotton, etc.).
For example: Imagine you are a buyer of rice in Dubai who buys rice from India and sells it to local buyers. If you have an urgent demand for rice to be imported from India, where will you find the funds to complete this import? Further, how will you find the right financial support for your deal? Also, how will you secure your imports from trading risks?
This is where Commodity Trade Finance comes in! With the use of trade finance services, you can grow your business without restricting your cash flow.
Further, today, as imports and exports of goods have increased, traders are approaching banks to get fiscal support for their import and export deals. Are you looking to get trade finance support for your import deals? Get collateral-free Trade Finance from us within 48 hours!
Types of Commodity Trade Finance
With more than 80% of the world’s trade depending on trade finance, Bank Instruments play a vital role in imports and exports. Moreover, there are different types of financing options available. Listed below are some of the Bank Instruments widely used by traders when it comes to global trade:
- Letter of Credit
- Standby LC
- Bank Guarantee
These Bank Instruments are designed to facilitate imports and exports in a safe and secure manner while reducing trading risks. Also, banks act as guarantors. Hence, using Trade Finance assures the counterparties that the payments & other terms will be fulfilled without any default.
How to Get Commodity Trade Finance?
To get trade finance for your imports, you can contact your bank with your request. If you have sufficient credit facilities available with your bank, you may be ready to provide a cash margin, and your bank will help you obtain the required instrument.
But, amid the global crisis, banks are scaling back their fiscal support for clients. On the other hand, the demand for goods is increasing. As a result, traders are looking for other options to obtain trade finance support for their imports and exports.
Since we understand the demand for trade finance among traders, Bronze Wing Trading, a Trade Finance Provider in Dubai, extends its own credit lines available with reputed banks to facilitate the issuance of LC, SBLC & BG MT760.
Contact us today to find out how we can support your import deal by providing commodity trade finance!