Trade Finance
In international trade, seller-buyer payments are associated with high risk. The seller is afraid of not receiving the payment, while the buyer is afraid of not receiving the promised goods. Therefore, to facilitate and reduce the risk of international trade between sellers and buyers, ARDB offers several trade finance solutions such as:
Documentary Collection
Documentary Collection
Documentary Collection is a cross-border trade payment service where the exporter submits the payment document to exporter’s bank (Remitting Bank) and the buyer’s document is sent to the importer’s bank (Colleting Bank) for payment.
- Import
- Export
| Import Documentary Collection | ||
|---|---|---|
| Fee Charge | Percentage | Minimum fee |
| Inward Documentary Collection Fee | 0.15% | USD40 |
| Settlement Fee | USD25 | N/A |
| Protest Fee | USD30 plus
Cable USD30 |
N/A |
| Export Documentary Collection | ||
|---|---|---|
| Fee Charge | Percentage | Minimum fee |
| Outward Documentary Collection Handling Fee | USD40 plus
handling fee USD50 |
N/A |
| Outward Documentary Collection Commission | 0.15% | USD30 |
| Protest Fee | USD30 plus
Cable USD30 |
N/A |
| Investigation/ Inquiry Fee | USD15 | N/A |
Documentary Letter of Credit
Documentary Letter of Credit
Documentary Letter of Credit is a cross-border trade settlement, providing secure payment between exporters and importers. The exporter receives a payment guarantee and the importer receives a guarantee on receipt of the goods in accordance with the terms of the Documentary Letter of Credit. Customers who need to use the Documentary Letter of Credit service include exporters and importers of all kinds of goods.
- Import
- Export
| Import Documentary Letter of Credit | ||
|---|---|---|
| Fee Charge | Percentage | Minimum fee |
| Issuance Fee | 0.15% p.m. plus
Cable USD30 |
USD40 plus cable USD30 |
| Amendment Fee (Amount and Expiry Date) | 0.15% p.m. plus
Cable USD30 |
USD40 plus cable USD30 |
| Amendment Fee (Others) | USD25 | N/A |
| Cancellation Fee | USD25 plus
Cable USD20 |
N/A |
| Reimbursement Fee | USD40 (deducted from proceeds) | N/A |
| Discrepancies Fee | USD40 (deducted from proceeds) | N/A |
| Settlement Fee | 0.15% plus
Cable USD20 |
USD20 plus
Cable USD20 |
| Export Documentary Letter of Credit | ||
|---|---|---|
| Fee Charge | Percentage | Minimum fee |
| Advising Fee | USD20 | N/A |
| Advising Amendment Fee | USD20 | N/A |
| Confirmation Charge | 0.15% p.m. plus
Cable USD50 |
USD40 plus
Cable USD50 |
| Transferable Documentary Letter of Credit | 0.15% p.m. plus
Cable USD30 |
USD40 plus
Cable USD30 |
BANK GURANTEE
BANK GURANTEE
BANK GURANTEE is a letter issued by the bank to guarantee payment on behalf of the customer (applicant) a certain amount stated in the letter of guarantee to the beneficiary when the beneficiary files a proper claim. ARDB offers several guaranteed services such as:
- Bid Guarantee
- Performance Bond
- Advance Payment Guarantee
- Warranty Bond
- Shipping Guarantee
| Bank Guarantee | ||
|---|---|---|
| Fee Charge | Percentage | Minimum fee |
| Shipping Guarantee Issuance Fee (Under LC Issued by ARDB) | USD40 | N/A |
| Issuance Fee | 0.15% p.m. | USD40 |
| Amendment Fee (Amount and Expiry Date) | 0.15% p.m. | USD40 |
| Amendment Fee (Others) | USD30 | N/A |
| Cancellation Fee | USD40 | N/A |
| Payment of Claim/Drawing (Deduct from Beneficiary) | 0.15% | USD40 |
