Trade Finance Products

This is a method of payment used in international trade where the seller (exporter) uses their bank as an intermediary to collect payment from the buyer (importer) in exchange for shipping documents. Unlike a Letter of Credit, banks in a DC act as facilitators but do not guarantee payment.

Requirements

Guarantees are commitments or promises made by one party to ensure the fulfillment of an obligation by another party. In financial or business contexts, a guarantee often involves a third party (the guarantor) promising to take responsibility if the original party (the principal) fails to meet their obligations. These include: Bid Bonds (secured & Secured up to UGX 500M), Performance Guarantees, Advance Payment Guarantees, Retention Bonds, Supplier and Payment Guarantees.

Requirements for Bid Security/Bonds/Tenders

Requirements for Other Guarantees

This is a short-term cash advance (with recourse) that enables the customer as an importer to meet the customer's immediate payment obligations under a sight or usance Letter of Credit presentation or Import Documentary Collection. Under such arrangements, Standard Chartered Bank finances the customer's import commitments by making payment against the Letter of Credit or Documentary Collection and receives payment from the customer at a pre-determined date in the future. Here, the credit period between the time that the bank provides finance and the time the customer repays the bank, should be sufficient for the customer to either manufacture goods for final sale or for direct sale to end buyers.

Requirements

This is a facility given to a client against the outstanding invoices/certificates that are awaiting payments. The bank discounts up to 70% of the invoice or certificate amount by availing the amount immediately on confirmation and this is then cleared on receipt of the payments from the invoiced party who undertakes to remit the invoice amount directly to the bank.

This is a facility granted to a borrower based on contracts that the client has been awarded and payment is expected upon completion or part completion of the project to the buyer.

This is a financial document issued by a bank or financial institution that guarantees payment to a seller (beneficiary) on behalf of a buyer (applicant), provided that the seller meets specific conditions outlined in the instrument.

Requirements

This is a facility granted to a borrower based on contracts / Purchase that the client has been awarded and payment is expected upon completion or part completion of the project to the buyer. Financing is 60% of the project.

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