DiliCapital structures domestic and international trade financing solutions to small, medium and large-sized companies that are pursuing opportunities in both domestic and international markets. Our structure enables credits and deferred payment operations, in the medium and long term, to be made effective immediately by our clients. We have been supporting our clients’ trade transactions since 2010.
We work with top financial institutions in North America, the United Kingdom, and Europe, as well as leading government agencies and export credit insurers in Canada, America, and Europe. These institutions offer us a wide range of flexible financing options that help our clients complete their transactions efficiently with speed and security.
Here are some of the benefits of our trade financing structure:
Eliminates Risk – our structure removes country and commercial risk, it provides financing for 100% of contract value; it protects against risks of interest rate increase and exchange rate fluctuation.
Price Discount: – our structure enables a buyer to receive between 15% to 20% of the contract value price reduction for a minimum one year contract. This price discount enhances trade profitability for the buyer.
Enhances Competitive Advantage – We enable sellers of goods to offer credit to their customers, making their products more attractive by offering credit terms and at the same time cash the sales, we also help sellers do business in countries where the risk of nonpayment would otherwise be too high against the risk premium to be added with the discounting interest.
Improves Cash Flow – Our structured trade financing model enables sellers to receive cash payment while offering credit terms to their customers and removes accounts receivable, bank loans or contingent liabilities from the balance sheet of the seller.
Increases Speed and Simplicity – Fast, tailor-made financing solutions; financing commitments can be issued quickly; no restrictions on the origin of export, and relieves administration and collection burden.
Trade Financing Procedure
The following is our general trade financing procedure:
- Submit relevant documents:
- A letter of Intent requesting trade financing,
- List of products, and cost,
- Copy of supply contract payment terms if available,
- Copy of signed commercial invoice if available,
- Letter of guarantee – Letter of Credit, Bank Guarantee, Bill of Exchange or Promissory Note (confirmation of capacity – RWA).
- Complete and sign the trade finance agreement with DiliCapital.
- DiliCapital provides a quotation based on the country risks of the letter of guarantee issuing bank, the credit standing of the issuing bank, the date of shipment, the financing amount, and the financing term.
- Upon acceptance of our quotation, the Letter of Payment is delivered to our bank via SWIFT.
- Within 60 days after receiving and authenticating the payment guarantee, DiliCapital deliver the first product shipment, and every 30 days thereafter until the contract is completed.
Contact Us to discuss how we can help your organization.