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To boost up cross-border business MTB offers export and import finance facilities for its customers depending on their requirements. Different trade finance services help the clients to run their business without any interruption. MTB trade finance service consists of funded and non-funded facilities. Following is a list of Trade Finance services.

Export finance facilities include:

Back to Back L/C (Sight/Usance)
The BTB L/C is opened on the basis of an existing non-transferable L/C (Master L/C)/ Sales Contract in favor of another beneficiary. Usually, BTB L/Cs are opened against master export L/C to mobilize export inputs.
EDF Loan
Government of Bangladesh under the supervision of Bangladesh Bank has formed a fund which is known as Export Development Fund (EDF). In case of meeting Sight L/C or Sight BTB L/C (for importing export input) payment at the premature stage of export, EDF provides the fund in foreign currency. This facility is called Loan against EDF.
SOD (Garments) & Packing Credit
SOD (Garments) facility is allowed to a customer for processing of export of goods. It must be adjusted from proceeds of the relevant exports. PC is a short term pre-shipment credit facility allowed to customers against export L/C and/or firm contract for processing/packing/shipping of goods to be exported or to meet up pre shipment working capital requirement. It must be adjusted from proceeds of the relevant exports.
Export Bill Discounting (FDBP and IDBP)
IDBP stands for “Inland Documentary Bill Purchased”. This facility is provided to purchase documents/ bills (duly accepted by issuing Bank) submitted by the exporter/supplier on (deemed) export/supply made to local export oriented industries or other entities against inland L/C usually denominated in Foreign Currency. FDBP stands for “Foreign Documentary Bills Purchased”. This facility is provided to negotiate (purchase) Foreign Documentary bills/documents submitted by the exporter on export made against export L/C denominated in Foreign Currency.
Export Factoring:
Export factoring is actually designed to ease the traditional problems of exporting on non L/Cs mechanisms particularly open account. It is a technique in which bank purchases a client’s receivables and advances cash to clients’ business. It benefits exporters by enhancing borrowing potential and an opportunity to make use of suppliers’ discounts.

Import finance facilities include:

LC (Sight/ Usance/ UPAS)
This is an obligation undertaken by the Bank to import/ procure any permissible items on behalf of the customer from both local and foreign sources.
Acceptance/IFDBC (Inward Foreign Documentary Bills for Collection)
This is acceptance made by the Bank for payment after a certain period against shipping documents (bill) for import through Usance (DP) L/C. It is an interim arrangement that allows time for the importer to make payment. IFDBC is termed as ABP (Accepted Bills for Payment) in some other banks in Bangladesh.
PAD stands for “Payment Against Documents”. It is an interim advance connected with import through L/C. As the L/C issuing bank is bound to honor its commitment to pay for import bill when these are presented, without discrepancy, for payment, the issuing bank will lodge the inward shipping documents/import documents to their book by creating PAD as soon as they receive it. It is demand loan. The importer receives the documents only after adjustment of PAD.

LTR stands for “Loan Against Trust Receipt” This facility allowed for retirement of shipping documents/ import documents (so that the importer can release the goods imported through L/C) by adjustment of PAD liability.

Loan General
This type of loan is allowed to the customer for a specific time frame for payment of Duty & VAT against import L/C.

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