عربي

Trade Finance & Services

Trade Finance & Services

QIB offers a wide range of trade services, you can benefit from our streamlined processes based on a sound technological backbone that are designed to provide best in class service levels, and reduce the hassles associated with trade transactions. Whether you are an importer or exporter, our correspondent network of over 150 foreign banks relationship will ensure that we meet all your international requirements.

Imports Letter of Credits

Letter of credits (LCs) issued by QIB give you and your suppliers comfort and security by helping to mitigate the inherent risks of international trade. The bank substitutes its own credit for that of the importer to pay for goods and services within a prescribed time limit and against compliant documents. With LCs, payments will only be made upon presentation of the required documents, giving comfort to both buyer and supplier.

Key benefits of LCs issued by QIB

  • Financial strength
  • Expert assistance
  • Special LC options

Payment can be effected at sight or deferred basis.

Types of Letter of credits issued by QIB

  • Back to Back LC
  • Transferable LC
  • Stand by LC
  • Revolving

Forms of Letter of credits issued by QIB

  • Current account LC
  • Murabaha LC
  • Wakalah LC
  • Mudaraba LC

Export Letter of Credits

At the request of customer QIB advise the LC with or without confirmation to the advising bank by giving strength to the customer for exporting the goods and payment receipt.

Qatar Islamic Bank offers a very prompt and efficient services on letters of credit confirmation, advising, paying, negotiating facilities to exporters. QIB's Letters of Credit confirmation service is used when exporters may have to deal not only with unknown foreign buyers, but also with their banks which are less well known institutions and whose letter of credit may not provide sufficient assurances.

By requesting QIB to confirm your export LCs, you obtain a guarantee of payment for document presented in compliance with the credit.

We at QIB's have a dedicated team of professionals trained and supported by state of the art business solutions to have the presented documents checked to the highest standards and to ensure that your pre-checked documents are processed straight through, without rejection. Not only do we provide an outstanding service, we also ensure that all documents are negotiated and dispatched timely. As an extension to our commitment to excellence, we also have an option of safe keeping original documentary credits, where we send the beneficiaries a working copy to facilitate the preparation of documents.

Letter of Guarantee (LG)

A Letter of Guarantee (LG) issued by QIB covers an agreement by the Bank to pay another party (the beneficiary) if the Bank's customer (the principal or applicant) defaults in his debt or obligation (a job contract) to the beneficiary.

  • Payment / Financial Guarantee: Issued by the Bank by order of the buyer in favour of the supplier and it serves to assure payment of delivered goods or services.
  • Bid Bonds: This is issued by the Bank by order of a supplier or contractor in favour of the principal (of a large order or project).
  • Performance Bonds: Like the bid bond, this is issued by the Bank by order of a supplier or contractor in favour of the principal once he has been awarded the order or project.
  • Advance Payment Bonds: In many contracts, Advance payment is made to the contractor by the Beneficiary to enable him to commence the work. Such advances are normally allowed only against Bank Guarantees.
  • Retention Money Bonds: Project agreements provide for stage payments to be made as work progresses. In addition, contracts customarily provide for the Beneficiary to retain a certain percentage from each progress payment (Normally 5 to 10 percent). Retention Money Bonds allow immediate release of this retained amount to the contractor.
  • Maintenance Bonds: Certain contracts conclude a condition that the contractor is obliged to remedy defects and carry out repairs during a maintenance period following completion. This obligation is secured by a Maintenance Bond.
  • Counter Guarantees: A Counter Guarantee is a Guarantee issued by a Bank in favour of another Bank in another country to enable the latter to issue its own guarantee in favour of a local beneficiary.

Documentary collections

Documentary collections are an additional option to documentary credits. Your supplier presents the necessary documents, with instructions, to their bank which forwards the documents to your bank for payment. Your supplier is paid once the payment is debited from your account, with no hidden interest or payment delays.

Types of documentary collection services:

  • Documents against payment (D/P) - Import documents are released to you on payment
  • Documents against acceptance (D/A) - Import documents are released to you against your promise to pay

Benefits to your business:

  • Eliminates the need for credit facilities if no bank finance is required on payment

Clean Bill for Collection

Clean Bill comprises financial documents such as Bills of Exchange (Drafts), Promissory notes, Cheques or other similar instruments without any accompanying documentation. Clean collections are frequently used for the settlement of trade on open account and for services rendered.

Export Bill for Collection

When documents are accepted from customers sent for realization under a collection schedule to the collecting / presenting bank, the transaction is termed as an Export Bill for Collection (EBC).

Shipping Guarantees

In situations when your goods arrive before the shipping documents have been processed through the banking system, QIB can issue a shipping guarantee. This allows you to take possession of the goods without the transport documents. Thus you avoid unnecessary delays and missed business opportunities.

Key benefits:

  • Shipping guarantees issued by QIB are widely accepted in the shipping industry.
  • A shipping guarantee can be issued on your request

Click here to download the Tariffs Trade Finance