5 Financial Instruments and Services Used By Professional Bankers to Facilitate Their Transactions

A variety of Financial Instruments are available to assist in performing banking and financing activities. They’re a commonly used in international trade transactions.

Letter of Credit: This is a letter from a bank that guarantees that the buyer’s payment to a seller will be received on time and for the right amount. In the case that the buyer is not able to make a payment for a purchase or transaction, the bank will be required to cover the full or remaining amount of the purchase.

Bank Guarantee: A Bank Guarantee (BG) can be used in several markets within the international trade and financial sphere. Bank guarantees can increase your chances of accessing the funding you are seeking.

SWIFT Communication Services: The SWIFT financial communications network is the world’s preferred system to deliver and receive banking messages. Getting access to the SWIFT on your own can become costly and has extensive and rigorous paperwork to complete, which could take between a few weeks to a few months. This obviously would significantly slow down any projects that have specific delivery dates and deadlines. This is where a well renowned finance company with partners in the SWIFT network becomes crucial for the fast processing of your transactions.

Credit Facility: A Credit Facility helps companies and brokers achieve their required levels of financing in a much shorter period of time. A Credit Facility works similar to a loan or a joint venture, however; this instrument is mainly used to increase your credit worthiness and in some cases generate a bigger and stronger relationship with your investors and partners.