Traditional Solutions
Make your ‘Business As Usual’ less stressful with our traditional trade solution.
Import solutions
Facilitate your domestic purchase or imports using our range of conventional/Islamic import solutions designed to cater to your every need.
Benefits:
- Strong BSF rating improves trust of suppliers & their banks
- Payment security through secure channel
- Optimal control and visibility on transactions
- Improve terms of payment
- Competitive pricing and financing options
Product Suite:
Letter of Credit (LC):
Conduct business with confidence for yourself and for your suppliers. Our strong rating helps you negotiate favorable terms and assist you with issuance, amendment, effecting payment etc. as per the terms of credit.Types:
- Sight/Usance LC: Flexibility to issue LC to pay at sight or after usance period based on your arrangement with the supplier.
- Revolving LC: Revolving credit allows the amount to revolve on the same terms and conditions as the original credit, following the occurrence of an event that will trigger a revolvement. By using revolving credit, you can agree with your beneficiary under the structure of a single credit to determine the base amount of each revolvement, timetable and whether it is cumulative or non-cumulative, and the number of revolvements that are required to fulfill the total value of the contract.
- Transferable LC: Allows the Beneficiary to transfer the L/C to one or more second beneficiaries (as per the credit terms and conditions). It is generally used when the initial beneficiary is a middleman who may wish to transfer all, or part, of the value of the L/C to one or more second beneficiaries. In transferable credit the beneficiary is not required to have a credit line/facility with the bank, the beneficiary can benefit by coordinating the trade transaction between the applicant and the supplier.
- Import Documentary Collection: We act as your collecting bank to facilitate transactions under documentary collection against payment or acceptance. Bills under DA can be further avalized to provide comfort to exporters of BSF’s commitment to pay as a co-obligor.
- Standby Letter of Credit [SBLC]: You may use Standby letters of credit to underwrite a wide variety of commercial and financial operations. They adopt the same basic forms as a commercial documentary credit, but the intention is often that the beneficiary, in whose favor a standby letter of credit is issued, draws only in case of default on the transaction to which the standby letter of credit relates. Thus, unlike a commercial documentary credit, a standby letter of credit acts as a guarantee if there is a failure to perform a contractual undertaking, such as the obligation of the buyer to pay or that of the seller to deliver.
- Financing Options: Our product suite comes with extensive finance options to ease out your cash requirement in the form of post-finance against letter of credit or bills under collection, avalization discounting etc.
Export Solutions
Boost your export business with complete peace of mind.
Benefits:
- Risk Mitigation [non-payment risk, country risk, exchange risk]
- Payment security through secure channel
- Use as a financing tool
Product Suite:
- Export Letter of Credit: We assist in advising the issuance and amendment of confirmed/unconfirmed L/C’s in your favor.
- Export LC Confirmation: By confirming a Letter of Credit we undertake to make payment against compliant presentation.
- Export Documentary Collection: We act as the remitting bank to facilitate transactions under documentary collection against payment or acceptance.
- Financing/Discounting Options – We provide financing against accepted LC’s, avalized bills etc. under your credit facility or corresponding bank lines.
Letter of Guarantee (LG):
We issue a range of local guarantees to facilitate your regular business needs and for executing bigger projects. LG constitutes an irrevocable obligation of BSF to pay in the event of non-performance/default.
Types:
- Bid Bond
This type of guarantee is required in connection with public tenders. If you participate in such a tender, you may be required to submit a bid bond together with its offer. Bid bonds therefore secure payment of the guaranteed amount. - Performance
Bond
This type of guarantee is issued by BSF at your request to undertake to pay the beneficiary amount in the event you fail to fulfill the contractual obligations. - Advance
Payment
Usually, an advance payment guarantee is issued to secure the refund of an advance payment in case of non-fulfillment of the contractual delivery/service obligations. - Payment
Guarantee
Issued as a means of securing payment for goods delivered or services rendered. - Retention
Bond
Retention money guarantee secures the release of “prepaid” retention monies in case of non-fulfillment of the contractual warranty obligations. - Zakat &
Income Tax Bond
Issued in favor of the Department of Zakat and Income Tax as a security against the payment of the outstanding income tax, delay penalty, and legal Zakat. - Shipping
Guarantee
In case of missing Bills of Lading, a guarantee may be issued in favor of the carrier, to obtain release of goods, without presentation of an original Bills of Lading. - Special Text
Guarantees
Tailor-made guarantees which are structured in accordance with your specific requirements, market standards or SAMA requirements incase of government entities. - Counter
Guarantees
Issued by BSF in favor of another bank (usually international) to induce them to issue a guarantee in favor of a beneficiary located in its country.
Islamic Products
Islamic Trade Products:
Assurance of timely payments from your buyers and minimized concerns about paying your suppliers through Import and Export Finance, along with our guarantees.
Islamic Sight Letter of Credit:
Do immediate payment to your supplier under fully Shariah compliant sight LC that later you can finance under Murabaha structure
Islamic Usance Letter of Credit:
Get your supplies now and pay at future date with BSF Shariah compliant Usance LC
Tawarruq Finance:
Facilitate your working capital need under various trade products
Professional Consultations and Support:
TradeSales@bsf.sa
