BANK PAYMENT OBLIGATION

THE MOST INNOVATIVE INSTRUMENT OF TRADE FINANCE

Credit Glorious Property Holdings offers its clients Bank Payment Obligations, an instrument that combines the reduced complexity and speed of a bank transfer to protect documentary credit products.

Despite the high risks, most international commerce’s operations are performed via bank transfers (open account) for the easiness and facility of this payment method. Operating in an open account regime is immediate, but it does not protect importing and exporting companies from carrying out their activity safely. Bank Payment Obligations instead are an instrument that combines the reduced complexity and the speed of a bank transfer to protect the documentary credit’s products.

LIQUIDITY

OPTIMIZE THE LIQUIDITY OF COMPANIES

COSTS

ADMINISTRATIVE AND MANAGEMENT

INEFFICIENCIES

OF INTERNATIONAL TRADE EXCHANGES

COMPLEXITY

OF DOCUMENT EXCHANGES

PURPOSE

With a Bank Payment Obligation it is possible to operate inside the international market with the execution speed and the ease of use of the open account operations, but with the typical protections of the Trade Finance products. A Bank Payment Obligation allows the importing company to be protected in the event of its purchasers’ insolvency and the exporting company to use an efficient, streamlined and fast product that optimizes the cash flow.

SERVICE DESCRIPTION

The Bank Payment Obligation is the firm commitment by a financial institution to pay a certain sum to a bank (the exporter’s bank) on the occurrence of certain conditions agreed in advance by the trade’s parties, and that results from the data’s IT exchange between the intermediary banks of the operation.

Unlike the traditional forms of documentary credit, it does not require a bank's commitment to pay a company. Still, the payment made towards another bank will provide the funds' transfer. The documents' exchange is the core of the trade finance's operations replaced by IT data, shared among banks via SWIFT.

With a Bank Payment Obligation, there is the protection of a documentary operation without the documents’ exchange, replaced by an IT exchange on designed platforms for the interaction between financial institutes recognized on all the international markets, like Credit Glorious Property Holdings.

DATA DRIVEN TRUST

Thanks to its expertise as a global leader in the trade finance field and the use of advanced IT instruments, Credit Glorious Property Holdings can offer you the most innovative solutions to mitigate international trade difficulties without sacrificing the comfort and easiness typical of domestic markets.

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