Register now or log in to join your professional community.
Trust receipt facility is simply one form of banking facility, our team assists us to finance the import of goods for a certain fixed period of time. That period of time can range from30 to180 days. This period of time granted by the banker will normally correlate with your business operating cycle. We can arrange Trust Receipt Facilities, against which you can take possession of goods for sale or further processing and/or obtain shipping documents. Repayment can be made by the trust receipt due date, providing you with more financial flexibility.
1.Trust Receipt
Asset based financing: Method used for funding purchase of inventories of consumer durables (appliances, automobiles), construction equipment, etc. In this arrangement the bank holds the title and the borrower can sell the goods (and thus repay the loan) but is obligated to keep them separate from the other inventory.
2.Documentary credit: Method whereby a bank allows an importer to take delivery of imported goods but retains the title to them. This arrangement allows the importer to acquire and sell goods without making payment under a letter of credit.
