CAB | Cambodia Asia Bank Plc,

CAB Trade Finance

Bank Guarantee (BG)
Whetherit be in joining a bidding process or incurring contractual obligations, it is not uncommon for businesses to be in a position where they want to make a payment commitment, but not necessarily be ready or willing to deliver payment just yet. CAB can help you deal with situations like these through our Bank Guarantee. This allows you to transfer the payment obligation to the bank, providing better assurance to your counterparty.
    Requirements
  • Copy of Contract
  • Bank Guarantee Format required by recipient, if any
Fees
Commission
  • 0.15% of the amount per month
  • Subject to minimum of USD 50
Cable
  • USD 50, if sent via SWIFT
Documentary Collection (DC)
In international trade, the seller may feel sufficiently comfortable to ship goods to the buyer prior to receiving full payment. However, simply handing over the shipping documents to the buyer would greatly increase the risk to the seller. It effectively grantsthe buyer access to the goods, and the fate of receiving payment is left completely on the hands of the buyer. In cases like this, both the buyer and seller may decide to use Documentary Collections to let their respective banks facilitate the exchange of shipping documents with the buyer’s payment or commitment to pay.Whether you are a buyer or a seller, CAB can assist you in dealing with your counter party’s bank in carrying out this kind of transaction.
Features
  • Can be either Documents against Payment (D/P) where the buyer effects payment upon receipt of the shipping documents, or Documents against Acceptance (D/A) where the buyer makes a commitment to pay at a specified future date upon receipt of the shipping documents
  • Increases the likelihood of payment for the seller, as the buyer is unable to obtain the goods without effecting payment or at least signifying commitment to pay at his bank
  • Provides some assurance to the buyer that the shipment will arrive
Fees (Buyer)
Commission
  • 0.15% of the amount
  • Subject to minimum of USD 50
Handling
  • USD 50, for D/A transaction
Fees (Seller)
Commission
  • 0.15% of the amount
  • Subject to minimum of USD 50
Handling
  • USD 50, for D/A transaction
Postage
  • USD 30 (for documents under 0.5 kg)
Letter of Credit (LC)
In international trade, it may happen that the seller is unwilling to proceed with shipment without any assurance of payment. At the same time, the buyer is also unwilling to initiate any payment without any assurance of shipment. In cases like this, both parties may decide to pursue the sale through the use of a Letter of Credit. An LC, issued by the buyer’s bank, is an irrevocable undertaking by that bank to honor a presentation by the seller’s bank of documents submitted in accordance with the terms and conditions specified in the LC. For buyers, CAB can facilitate the issuance of an LC to your counter party. For sellers, CAB can facilitate the receipt and transmission of shipping documents.
Features
  • Allows buyers to impose documentary specifications that meet their requirements
  • Allows buyers to more tightly control the timing of shipments and presentation of documents through the terms of the LC
  • Payment to the seller is guaranteed by the buyer’s bank provided that the terms of the LC are met
  • Enables seller to receive guarantee of payment prior to shipment of goods
Fees (Buyer)
LC Issuance Commission
  • 0.15% of the amount per month
  • Subject to minimum of USD 50
Cable USD 50 cable charges
Handing of Usance Payment Commission
  • 0.15% of the amount per month
  • Subject to minimum of USD 50
Cable USD 20
Term Extension or Amount Increase Commission
  • 0.15% of the amount per month
  • Subject to minimum of USD 50
Cable USD 20
Other Amendments Commission
  • USD 30
Cable USD 20
Cancellation of LC Commission
  • USD 30
Cable USD 20
Shipping Guarantee Commission
  • 0.10% of the amount
  • Subject to minimum of USD 30
Fees (Seller)
LC Advising Commission USD 30
LC Amendment Advising Commission USD 30
Transmittal of Documents Commission
  • 0.15% of the amount
  • Subject to minimum of USD 50
Handing USD 50
Postage USD 30(for document under 0.5 kg)
For a detailed discussion, kindly contact 023-980 000 or 012-222 013.
How to Apply?
Visit one of our branches or you can chat with us to know more information.