Corporate Finance
The intense focus on trading within the Middle East region has led to an increased need for trade finance within the UAE. Traders are particularly needed to utilize Corporate Finance in Dubai in the event of an order that is greater than their financial capacity or when they are looking to expand. Exporters, importers, contractors, developers, manufacturers, and contractors require various kinds of trade finance to satisfy their financial requirements. The most sought-after types of Corporate finance and Letters of Credit in Dubai are listed below.
Letters of Credit
The financial institution can issue a document LC as an irrevocable commitment, which can be the safest instrument for banking accessible to traders. With the terms of an LC agreement, the banks agree to pay the beneficiary if all documents pertaining to the Corporate Finance are provided and the trader is in compliance with the conditions and terms. When executing an international trade, the exporters and importers who are part of the transaction rely on banks as intermediaries to guarantee payments and delivery of products.
Trust Receipts
Traders are often faced with an issue where they do not have enough capital to buy merchandise. In these instances, banks can extend corporate finance to them by providing the necessary funds with ownership rights reserved through an agreement for trust receipts. As per the terms of the trust receipt arrangement, the business agrees to pay the bank once it has sold the item. Trust receipts are an excellent option for dealers and distributors who are selling expensive products. Trust receipts are categorized as loan-based on assets, aligning with the principles of letters of credit.
Bank Guarantee in corporate finance
Bank guarantees are utilized in situations where two parties are bound to perform specific duties to finish the transaction. In these types of projects, each party uses the bank guarantee to demonstrate their financial stability and credibility. Bank guarantees and letters of credit help businesses reduce the risk posed by both sides of the transaction. The purpose of a contract is crucial in the facilitation of high-value transactions, emphasizing the significance of corporate finance in ensuring financial stability and reliability for all involved parties.
How it Works?
With a vast experience in making businesses take a leap towards their success, Whether navigating the realms of corporate finance or letters of credit, we strive to make the process as simple and smooth for our clients as possible.
- Schedule a free appointment by giving us call or fill the contact form
- Our financial consultants will review your company details.
- Submit the required documents requested during the meeting
- We’ll start connecting your company to the financers in our network and get you a bespoke lending option tailored to your requirements.
- We take all the effort to streamline the lending process for you so can do what you do best expand your business.
A variety of lending options are available and offered to our clients based on their requirements and eligibility.