Sell it before you pay for it

One minute guide. What does it refer to? Sounds like a great idea. But it may not be very smart. "Sell it before you pay for it" - receive goods from your suppliers and pay for them later, after you have sold them. The more you buy, the more cash you

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Islamic trade finance

One minute guide. What is the Shari'a? The Shari'a is a body of rules based upon the Quran. Complying with these rules forms the basis of modern Islamic finance. In the Quran, there is a great amount of guidance as to how life should be lived,

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One minute guide. Who is PrimaDollar? PrimaDollar is a UK-based trade finance platform working with exporters and importers on a global basis. What does PrimaDollar do? PrimaDollar

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PrimaDollar credentials

One minute guide. Reliable, timely, simple We offer a simple trade finance product. We pay the exporter at shipment and the buyer can pay later. If the buyer cannot pay, we take the risk. Buyers get open account or sale contract terms, whilst the exporter is

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PrimaDollar calculator

One minute guide. What is it? Our clients want to know what our service costs. We provide a simple product at a simple price. You can price your trades online without having to call us. The pricing calculator is available from our main menu, and is located:

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First dollars, second dollars

One minute guide. What are first and second dollars? Exporters, like any business, have different sources of finance at different costs. The cheapest source of finance can be called the first dollars. These first dollars usually come

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Export supply chain finance

One minute guide. What is it? Supply chain finance (or SCF) refers to a funding program implemented by a buyer to provide early payments to his suppliers. It typically works like this: The buyer teams up with one or banks, who

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Basel 3 and trade finance

Five minute guide. What does Basel 3 say about trade finance? Basel 3 requires banks to keep high levels of capital against trade finance including letters of credit that they issue. Many banks are reducing or pulling out of trade finance services as a result. This

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International factoring

One minute guide. What is it? International factoring is the process of purchasing an invoice from an exporter in one country and collecting it later from his buyer who is in another country. This means that the exporter has been paid upfront, and the

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Letter of credit

One minute guide. What is it? A letter of credit ("LC") is a flexible and internationally accepted form of financial guarantee. What it does depends upon what it says. But with that caveat, it is commonly organised to support the trade in goods.

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Verification letters

One minute guide. What is a verification letter? A verification letter is a short letter referring to one or more commercial invoices, signed by the buyer and addressed to the trade financier. The letter confirms the buyer's confidence and satisfaction

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Dual factoring

One minute guide. What is it? Dual factoring is the process of coordinating two factoring companies so that one of the companies can purchase an invoice from an exporter in one country and relying upon the other factoring company to collecting the amount due

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Open account

One minute guide. What is it? Open account means exporting on the basis of "ship now, pay later". Export the goods. Buyer promises to pay later. Trust the buyer. It

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Documentary collection

One minute guide. What is it? Documentary collection is a system to help exporters. It is used by exporters: to ensure that control of the goods is retained until the exporter is sure that the buyer will pay, and correspondingly,

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Shipping documents

One minute guide. What are they? Shipping documents are involved in the export and import of goods. The exact set of documents varies from trade to trade, and depends upon the incoterm

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One minute guide. What is it? Incoterms are terms like: FOB, CIF, DDP - and you will find them specified on purchase orders for the manufacture and import of goods. Incoterms are established by the ICC, and were last

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Export Finance

One Minute Guide What is it? Export finance helps exporters to offer credit to their buyers. This means that they can offer "ship now, pay later" terms to buyers - and this is what buyers want. Export finance

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Ship now, pay later

One minute guide. What is it? This phrase describes how many buyers would like to source goods. They would like the exporter to ship first, allowing the buyer to pay later. But this can be problematic for many reasons: By shipping

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Discrepant LCs

One minute guide. What is it? Many exporters ask their buyers to arrange a letter of credit. This is a payment guarantee from the buyer's bank. It is intended to ensure that the exporter can ship the goods and be confident that the buyer will pay for them

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