Our Customisable Solutions: Export Products

1. Advising of Documentary Credits

Authentication and Notification of Arrival of Export Letters of Credit (LC).

2. Confirmation of Documentary Credits

By adding its confirmation to the LC, DBS undertakes to pay the exporter if the exporter meets all the terms of the LC in addition to the Issuing Bank's undertaking to pay. Confirmation provides an additional assurance of payment to the exporter who is not comfortable with accepting the risk of the LC issuing bank or political /country risk of the country of the issuing bank.

3. Outward Bills For Collection

This is a process whereby an exporter collects payment from the importer using intermediary banks and without creating an LC. The exporter states conditions for release of documents to the importer and sends the shipping documents to its own bank, which then forwards the documents to the importer's bank. The documents can be released against Payment (D/P) or against acceptance (D/A).

4. Negotiation of Documentary Credits

An exporter with a contract to supply goods may have an LC opened in his favour, but may not have sufficient cash flow to maintain liquidity of the business from the time the goods are shipped to the time the issuing bank makes payment. The exporter can then avoid this temporary cash shortage by negotiating the LC with his bank, and get a cash advance pertaining to the amount stated on the LC, subject to his documents being in compliance with conditions stated in the LC and to the bank's approval.

5. Loan Packing Credit

A short term facility extended to exporters prior to shipment of goods. While an exporter may have an LC opened in his favour, this may not be very helpful if he does not have immediate cash to obtain raw materials, etc, to manufacture and deliver the goods as per LC terms. The exporter can therefore avoid this temporary cash shortage by depositing the LC with his bank to raise an advance, which is to be offset against the export LC proceeds upon eventual negotiation.

6. Export Bills Purchased/ Bills Receivable (Discounted/Sale) Financing

The Bank can provide financing for bills under documentary collection basis. Usually the bank will retain payment recourse to the exporter.