Other Trade Services

Documentary Collections

Documentary collection is one of the payment method used in foreign trade transactions. A collection is a process whereby a bank acts on instructions given by the drawer. The bank:

• Obtains acceptance and/or payment
• Delivers commercial documents against acceptance and or payment
• Delivers documents under some other stated conditions

Guarantees

A bank guarantee is an irrevocable obligation of a bank to pay a sum of money in the event of non-performance of a contract by a third party.

Benefits:

• Simplified security/collateral arrangement
• Immediate access to the proceeds of sales
• Provides additional working capital

Foreign Bill Discounting

This is an additional source of finance for the customer in export trade. It gives immediate value to customers’ bills of exchange prior to maturity. The applicable rate is negotiable. Bank has recourse to client in case of non-payment.

Benefits:

• Immediate access to the proceeds of sales
• Provides additional working capital
• Simplified security/collateral arrangement

Invoice Discounting

The main objective of this facility is to give immediate value to customer’s invoices before maturity. Facility is available to clients who trade in credit terms. Invoices to be discounted must be from reputable organizations. The bank has recourse to the client in case of non-payment.

Benefits:

• Immediate access to the proceeds of sales
• Provides additional working capital

Bill Avalization

This is an undertaking given by the bank to honor a customers’ behalf, payments of bills of exchange for both domestic and international trade. The facility is normally used where the sellers’ only concern is the buyers’ risk.

Benefits:

• Drawee can obtain credit and discount on availed bills
• Payment is guaranteed by the bank

If you wish to contact the Trade Finance department, please call the phone numbers of the head office or send an e-mail to tradefinancekenya@boakenya.com. Alternatively, you can call or visit any of our branches

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