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Islamic Post-Shipment Export Financing
Why is this service right for you?
Improve your cash-flow and working capital by getting access to advances on your exports or sales.
Other Benefits
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Financing may be provided for exports under Documentary Credits and Documentary Collections
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Ability to obtain non-recourse financing for exports under Documentary Credits or Avalised Documentary Collections
How our Islamic Post-Shipment Export Financing Wor
Because you will already have shipped the underlying goods prior to approaching us for financing, we base our Islamic Post-Shipment Export Financing on the Tawarruq concept.
The bank sells a base metal to you on deferred payment terms at an agreed profit. The bank then arranges, through a power of attorney given by you, to sell the metal on your behalf to a broker for instant cash, the financing that you require. The maturity of this sale is tied to the maturity of the underlying export bill whilst of essence the spot value of the base metal will not exceed the value of the underlying bill. The proceeds of the export bill are then used to settle your liability to the bank for the purchase of the base metal.
By assigning the proceeds of a DC or avalised collection bill to us we give up any recourse to you for payment of the metals purchase should the bill remain unpaid.
Documentation: Prior to availing the Islamic Post-shipment Export finance facility, the following document should be in place duly signed by your authorized signatories:
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Master Murabaha Agreement
Thereafter, for every transaction a Murabaha Sale Contract, Power of Attorney and repayment schedule would be signed
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