Total Package Approach
FIMBank specialises in providing trade finance products and solutions to international trading houses, both in developed as well as in developing markets around the globe.
Market developments pose constant challenges to traders. Shifts in supply and demand patterns result in changing prices, which in turn affect trading companies’ risk and liquidity positions. The relationship of traders with suppliers and buyers often depends on the ability of traders offering something in return which goes beyond the traditional financing products. Competition and market developments drive innovation which in turn affects business for traders and hence the banks which service their trade finance requirements.
For instance, a trading house having a good relationship with a producer in a developing country might be asked to finance the products before they are ready for transport. By agreeing to this, the trader is in a way, being asked to provide working capital to the producer of the commodity or product. This kind of financing is known as Pre Export / Pre Payment Financing. FIMBank would be ready to assist in cases like this, as long as the related performance and delivery risk would be acceptable to it. Often, risk sharing schemes are agreed to between the trader and FIMBank. Once the goods are produced and move in international territories the financing shifts to the more regular products where title documents are prevalent and the control of the actual products becomes much easier. This stage is known as Post Shipment Financing. FIMBank will provide for the financing of the goods and commodities in transition until they have reached final destination. One can therefore appreciate the various permutations and the different names used to describe the myriad banking products which can be employed to handle financing requests.
After having secured the Post Shipment Financing, i.e. Warehouse Financing or Transshipment Financing, traders would want to sell on the goods traded to other traders or final buyers. If sold to international clients in emerging or developed markets, FIMBank would still offer the facility to proceed with the financing.
If the ultimate buyer of the products represents an acceptable buyer risk in the developed world, FIMBank might decide to accept the receivable or the relative financial instrument resembling the receivable. In any case, we might confirm and discount the import LC (Letter of Credit) which the ultimate buyer has issued in favor of our trading house. Should the risk be related to an emerging market, our Forfaiting experts will be glad to evaluate the transaction and search for ways to shorten your waiting period to receive the related payments. Should the transaction be done on open account, FIMBank’s Factoring Business Partner might get involved with a view to shortening your asset conversion cycle by providing you with financing for your invoices.
Whatever your requirements and the specifics of your case, the FIMBank Group will be able to provide and deliver innovative and tailor-made financial solutions which will facilitate your export - import - trading business.
FIMBank offers a range of products to International Trading House to help them mitigate risk and manage liquidity. A “Total Package Approach” can work in total or in segments.