International trade is oftentimes burdened with significant costs associated with freight, insurance, cross-border payments and foreign exchange, to name a few. Commonly, these costs increase exponentially when factoring in tariffs, import duties, incoterms, not to mention shipment and customs delays, warehouse fees and miscellaneous complications. Many multinational enterprises do not have a full-fledged finance department but rather
outsource this function to focus on being successful in their trade. We at MPG are happy to assist you with your trade finance requirements, reducing your company’s stress levels and giving you more time to take care of your business.
Import & Export finance solutions are designed to overcome many cross-border trade challenges, freeing up your working capital to grow and expand your business.
A typical transaction is illustrated below:1. A sales contract is entered into by the exporter and the importer.
2. The exporter delivers the goods to the importer, who is contractually bound to pay for them at a future date.
3. The exporter’s bank advances the payment to the exporter in the currency indicated in the proforma invoice.
4. The importer remits the payment for the goods on the expiration date, as per the invoice.
5. The exporter repays the advance to the bank, upon receiving the importer’s payment