Eximbank Loan
This is a type of loan made available by Türkiye İhracat Bankası A.Ş. (Eximbank) through banks to promote exports.
It is used at the pre-export stage for exports and exports commitment by the exporter of Turkish-origin goods set by the EximBank. As it is made available under governmental support, this provides interest and cost advantages vs. other loans made available by banks.
Letter of Credit
The letter of credit is a type of bank guarantee ensuring the payment for the price of the goods to be made in case the conditions agreed by the purchaser and the seller between them and the rules of international trade are complied with.
As for the purchaser, it creates confidence for the purchaser, as the bank will refuse to make payment to the seller who do not fulfill the letter of credit the conditions.
As for the seller, payment will be made in case proper documents set out in the letter of credit are presented to the bank. For this reason, a financing facility is provided for the seller.
Letters of credit by type:
- Irrevocable
- Confirmed / unconfirmed
Letters of credit by terms of payment
- Deferred
- Acceptance Credit
- Sight
- Mixed Payment
- Negotiation L/C
Special letters of credit:
- Rotative
- Red Clause, Green Clause
- Back-to-Back
- Transferrable
- Stand-by
External Guarantee
External Guarantee is a loan product where the bank guarantees the requested amount in case overseas debts and commitments are not satisfied in compliance with the agreement between both parties.
Acceptance Loans
This is our loan product making your deferred import payment. The amount of the goods can be paid within the term agreed according to the agreement of the exporter and the importer, after the shipment. Upon acceptance by the importer of the policy and acceptance by the Bank, a non cash loan will be made available to the importer.
Forward Rate Agreements
These are agreements undertaken on a notional currency, for a predetermined term, by both parties.
Forward FX Trading
These are agreements for the purchase or sale of a currency against another currency, at a predetermined maturity date and exchange rate. This product eliminates uncertainty for companies with deferred cash inflows-outflows. The exchange effective rate at the maturity date, therefore the amount, is predetermined. In practice, forward foreign exchange transactions are made to protect our customers’ operational decisions from volatilities in foreign exchange markets.
Swaps
These are swap agreements where the parties swap interest rates or foreign currencies. In an interest swap, parties swap interests other than the principal to access lower interest rate loans. In an exchange rate swap, parties swap a certain amount of foreign currency on ratio and conditions agreed previously by them.
Options
The option purchaser becomes entitled to purchase-sale a financial product at a certain term, price (exercise price) and amount. The purchaser has the option to exercise or not exercise such right use.
FX Options
The purchaser of a foreign exchange option may effect the transaction at a predetermined term and exchange rate on market conditions against or may abandon the transaction the premium paid thereby in purchasing the option. The option term premium is calculated in view of the price (spot and exercise), market volatilities and interest rates. The loss of the option purchaser is limited to the premium paid thereby.
Prepayment
In a prepayment, the importer will pay the price of the goods in advance, before the shipment of the goods by the exporter.
Cash Against Goods
Cash against goods is a type of payment where an exporter delivers, free of charge, the documents representing the goods either directly or through the bank and the importer pays the price of the goods at a date after the date it cleared its goods through the customs.
Against Documents
Cash against documents means that the bank delivers the documents to the importer provided that the price for the goods-related documents sent by the exporter to the purchaser has been paid.
