Trade-related loan

1. The Importer and Exporter enter into a contract
2. • a) The Importer sends an application for opening of a letter of credit to the Issuing Bank
   • b) The Issuing Bank opens a Letter of Credit
   • c) Advise of the Letter of Credit
3. The goods are shipped / the services are rendered
4. • a) The shipment/services documents are sent by the Exporter to the Beneficiary’s bank
   • b) The Beneficiary’s bank sends documents to the Issuing Bank
5. • a) The Issuing Bank provides a reimbursement authorization to the Financing Bank
   • b) The Financing Bank transfers the payment to the Beneficiary's Bank and provides a payment deferment to the Issuing Bank
   • b) The Beneficiary’s bank transfers the payment to the Exporter
6. The Issuing Bank delivers the documents and provides the payment deferment to the Importer
7. • a) The Issuing Bank transfers the payment to the Financing Bank upon expiry of the deferment
   • b) The Importer pays the Issuing Bank upon expiry of the deferment

1. The Importer and Exporter enter into a contract
2. The Importer enters into loan agreement 1 with the Importer’s bank
3. The goods are shipped / the services are rendered
4. The Importer’s bank enters into loan agreement 2 with the Financing Bank
5. • a) Loan provision¹ to the Importer’s Bank
   • b) The Importer’s bank makes the payment to the² Exporter’s bank
   • c) The Exporter’s bank transfers the payment to the Exporter
6. • a) The Importer's bank transfers the payment to the Financing Bank under loan agreement 2
   • b) The Importer makes payment to the Importer’s bank under loan agreement 1

¹ A loan can be provided after the Importer’s Bank has paid the Exporter’s Bank (refinancing)
² The letter of credit form can be used for settlements

1. The Importer and Exporter enter into a contract with a payment deferment provision
2. The Exporter enters into loan agreement 1 with the Exporter’s Bank for the period until receipt of proceeds under the contract
3. The goods are shipped / the services are rendered
4. The Exporter’s bank enters into loan agreement 2 with the Financing Bank
5. • a) Loan provision¹ to the Exporter’s Bank
   • b) The Exporter’s bank transfers the money to the Exporter
6. The Importer makes a payment under the contract through the Importer’s Bank to the Exporter’s account with the Exporter’s Bank²
7. The Exporter’s bank writes off the proceeds from the Exporter’s account to repay the loan under loan agreement 1 and makes a payment for the loan repayment to the Financing Bank under loan agreement 2

¹ A loan can be provided after the Exporter’s Bank has paid the Exporter (refinancing)
² The letter of credit form can be used for settlements

1. The Importer and Exporter enter into a contract
2. The Exporter enters into loan agreement 1 with the Exporter’s Bank for the period until receipt of proceeds under the contract
3. The Exporter’s bank enters into loan agreement 2 with the Financing bank
4. • a) Loan provision¹ to the Exporter’s Bank
   • b) The Exporter’s bank transfers the money to the Exporter
5. The Exporter produces goods / provides services using the loan funds. The goods are shipped / the services are rendered
6. The Importer makes a payment under the contract through the Importer’s bank to the Exporter’s account with the Exporter’s bank²
7. The Exporter’s bank writes off the proceeds from the Exporter’s account to repay the loan under loan agreement 1 and makes a payment for the loan repayment to the Financing Bank under loan agreement 2

¹ A loan can be provided after the Exporter’s Bank has paid the Exporter (refinancing)
² The letter of credit form can be used for settlements