Our Services

Securing Your Transaction from Start to Finish

1. Documentary Letter of Credit (DLC) MT 700

The primary use of our documentary letter of credit is facilitating the movement of goods from one country to another. In some cases, we are also able to provide instruments for credit enhancement, allowing the beneficiary to better leverage existing credit facilities.

Our clients generally fall into two broad categories:

a) Clients purchasing goods regularly to hold stock or fill ongoing orders

These clients open a letter of credit (LC) to their supplier before receiving the goods. When they open the LC through us, they do not need to use their own funds until the goods arrive. This can be 30, 60, 90, 120, or even 366+1 days after the LC is opened. The longer the manufacturing and shipment period, the more advantageous our bank instrument becomes. Instead of tying up capital with their supplier, clients can use their funds to maintain stock, finance credit terms for regular buyers, support marketing, and more.

b) Trading companies, middlemen, and brokers

This type of client already has a buyer lined up for the goods. The buyer wants to pay cash against original shipping documents but does not want to make a deposit or open an LC until the goods are en route or have arrived at the destination port. The middleman needs the goods to be shipped in order to complete the transaction.

However, the supplier requires either a deposit or an LC before shipping. The middleman therefore opens the LC through our company. Once the goods are shipped, he arranges for his buyer to pay for them on a Cash Against Documents (CAD) basis. This allows the client to engage in more transactions, as he does not need to commit as much of his own capital to each deal.

In all cases, we open the letter of credit to cover the shipment period of the goods. Upon arrival at the destination, our bank must receive the full value of the documents submitted under the LC before releasing those documents.

2. Standby Letter of Credit (SBLC), Bank Guarantees (BGs) MT 760

A standby Letter of Credit or Guarantee is an undertaking to pay in the event of default. Standby letter of credit and Guarantees can be written in a number of different ways, allowing them to be applied to many different types of transactions.

Our standby letter of credit has been used for:

§ Purchase and sale of goods

§ Credit Enhancement

§ Real Estate

§ Proof of Ability

Because SBLC and BGs are so versatile, it’s possible to give a description of all the different types of transactions that they might be right for. If you have a transaction that you think might be for a SBLC or BG, please speak with one of our agents.

3. SWIFT Messaging MT 799/199

Many of our clients find themselves in a “Chicken and Egg” situation. They want to start a deal and so does the other party-buyer or seller. But no one wants to commit themselves first. The buyer doesn’t want to issue a letter of credit until the supplier has issued a performance bond. The supplier doesn’t want to issue a performance bong until the buyer issues a letter of credit. Our SWIFT messaging can help start the transaction.

SWIFT message can be used to

§ Send a corporate payment undertaking

§ Send official acceptance of a contract

§ Show proof of ability and readiness to enter into a transaction

§ Any business-related message that benefits from the added weight of going through the SWIFT system

We work with many different financial institutions, large and small. Please ask one of our agents for our latest tariff and institutions list. Please note if a specific line is full, or a bank might reject a specific transaction, we will suggest an alternative. Different institutions also have different costing depending on the rating. Costing can be affected by the credit line availability, the size of the transaction and its risk level, or many other factors.

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4. Specialized Trade Finance Risk Consultancy

Beyond providing instruments, we offer expert advisory services to address the unique financial risks inherent in commodity trading. We help structure your deals and implement financial safeguards to protect against potential loss of money, ensuring your capital is secure throughout the transaction lifecycle.

INSTRUMENT ISSUANCE PROCEDURE

We are interested in working with clients in the commodities industry who have special relationships that allow them to obtain preferential pricing when purchasing commodities. These clients can work with us in two ways:

through our Standard Issuance Procedure (SIP), or
through our Joint Venture (JV) method.

1) Standard Issuance Procedure (SIP)

I. The client completes the application form and submits it together with their CIS.

II. Ntua provides the client with the following documents:

Complete instrument draft
Invoice
Agreement to be signed by the client

III. The client reviews the draft with any relevant third parties (e.g., the beneficiary).

IV. The client requests amendments by completing the Ntua Amendment Form.

V. The client receives the revised draft and either repeats Step III if further changes are needed, or proceeds to Step VI.

VI. The client provides Ntua with the following:

Signed and approved copy of the final draft for issuance
Certificate of incorporation of the client company
List of shareholders of the client company
Passport copy of the main shareholder
Ntua Agreement signed by an authorized signatory of the client company

VII. Ntua receives the required issuance fees as per the agreement.

VIII. The issuing institution issues the instrument according to the wording approved by the client.

IX. The client receives the SWIFT copy of the issued instrument.

2) Joint Venture (JV)

Under the Joint Venture method, we provide the client with a draft of the letter of credit. Once the draft is approved, the client who is unable to pay the full issuance fees—requests our assistance in moving the transaction forward.The client pays GEBS an initial fee to send a SWIFT message to the beneficiary’s bank. This SWIFT message will:

Request confirmation that the beneficiary’s bank will advise the instrument to the beneficiary; and
Request confirmation that the beneficiary agrees to ship once the original LC is advised to them.

The charges for this message follow our RWA/Pre-Advice pricing. The message will also include the full text of the proposed instrument.

Once we receive a SWIFT reply from the beneficiary’s bank confirming that they will advise the instrument and that the beneficiary agrees to ship upon receipt of the advised instrument, we will proceed to issue the original instrument without any additional upfront fee.

Requirements to Qualify for the Joint Venture Method

The client must be purchasing a tradable commodity at a competitive (favorable) price.
The letter of credit must require that the complete set of bills of lading be consigned to the issuer.

If a client wishes to use this method, we will review the full transaction details and determine whether it qualifies for the Joint Venture program.