GarantiBank International NV may provide pre-shipment financing to borrowers who request funding prior to the actual shipment. Such a request may be stemming from financing needs related to the supplier's specific production or inventory situation. The request may come straight from the supplier or from the buyer. The party requesting pre-shipment financing may present the sales contract signed by herself and the buyer. Alternatively, pre-shipment financing may also be requested for merchandise, which has not yet been sold to third parties.
As pre-shipment financing inherently includes supplier's performance risk and underlying commodity's market risk, GarantiBank International Trade & Commodity Finance Teams need to assess such risks as well as the repayment ability of the borrower. Depending on the INCOTERMS, additional risk assessments may be compulsory.
The risk assessments and respective structuring of the transaction are made by our Trade & Commodity Finance Teams in close cooperation with our valued clients. The goal is simple: To mitigate the risks and to benefit from international trade opportunities.
Related to this type of financing, see also Origination Distribution.