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BSIC (Ghana) Limited through its network of Correspondents assist customers with international trade. There are varied products for importers and exporters.

 LETTERS OF CREDIT(L/C'S)

The bank may confirm an outgoing (import) L/C based on which a customer is requesting for the issuance of the L/C. This guarantees payment to the supplier of the importer. Similarly, the bank may confirm an incoming (Export) L/C through the use of our wide range of first class Correspondents, guaranteeing payment. The following trade finance products are available:

 USANCE LINE FACILITY

Under this scheme the Bank will use a line that is made available to it by its correspondent. An L/C will be established by the customer, who is supposed to build up funds with the bank by maturity date. The funds are then transferred upon submission of documents by the supplier. The bank may give a Loan/Overdraft option to the customer where the customer is unable to build up the required funds by the maturity date. The built up funds/facility will be used to purchase the required foreign exchange (FX) on the establishment date, in order to avoid any foreign exchange risk.

 SIGHT LETTERS OF CREDIT

The Bank establishes the L/C against the cash provided by the customer. Where the importer provides the Ghana Cedi, the foreign exchange is covered by the Bank at the prevailing rate on the date of establishment. The FX is then held for subsequent payment to the beneficiary against presentation of relevant documents. By this arrangement, the supplier is assured the funds are available at a known Bank to meet any drawings. The importer also covers himself by entering into an FX deal and so avoids any adverse fluctuations in rates in the future. The advantage to customers is that, funds are not available to suppliers until goods/services are supplied.

 EXPORT FINANCE

The bank will support the exporter in the following ways:

  •   PRE-SHIPMENT FINANCING
    Where a customer receives an L/C from a foreign buyer, the Bank may advance finance to the exporter, using the L/C as the security. Repayment for the facility will come from the proceeds of the L/C.
  •   BILLS DISCOUNTING
    Using the export documents, the bank may negotiate and advance up to a certain percentage of the value of the shipment and later arrange for the collection of payment from the Importer's Bank.