Frequently Asked Questions
Find answers to common questions about our trade finance instruments, procedures, and services.
Getting Started
What is the procedure for issuance of financial instruments?
Our issuance process is structured and transparent to ensure compliance and efficiency. We begin with an application form to understand your transaction’s details and specific requirements.
Once submitted, our processing department prepares a draft instrument, which is the initial copy of your financial instrument. This draft is sent to you for comprehensive review with all parties involved, especially the beneficiary.
We accommodate amendments and revisions until all parties agree on the final terms. Once approved, the final copy requires your signature and stamp for official authorization.
After receiving your approval, we prepare the invoice and agreement. The issuing bank will then issue the instrument within 6-8 working days after receiving the payment.
How do I get started with Express Trade Finance?
Getting started is simple and requires minimal documentation. Contact us with details of your trade transaction and the type of instrument you need.
We’ll guide you through our application process, understand your specific requirements, and prepare a customized proposal. You can reach out via email, phone, or arrange a consultation call to discuss your needs in detail.
Payments & Fees
When do I need to pay fees, and what is the payment process?
Our payment procedure is consistent across all transactions for compliance and risk management. The issuance fee must be paid after the draft is approved and before issuance.
This is an industry standard that all providers follow. The issuing bank will not proceed with issuance until payment is received. We do not require upfront administration or processing fees—you only pay once the draft is finalized and approved by all parties.
If the draft is not approved, you will not be charged any fees.
What is the fee structure and how is pricing determined?
Our fees depend on several factors specific to your transaction:
• Type of instrument (Letter of Credit, SBLC, etc.)
• Transaction amount
• Instrument validity period
• Beneficiary bank location
• Selected issuing bank
We work with a network of rated and reputable banks with varying fee structures. Our main benefit is that we offer access to quality banks without requiring collateral or cash bonds from our clients—only a minimal service fee.
Can I pay fees through alternative methods (cash, bank transfer, credit card)?
Yes, we accept multiple payment methods for your convenience. We accept cash payments at our Dubai office and bank transfers for international clients.
For added security and your peace of mind, if you have a representative in Dubai, they can visit our office in person for payment and contract signing. This allows you to engage directly with our team and feel more comfortable during the transaction process.
Can someone else (like the seller) pay for my instrument?
Typically, it is the buyer who pays for the instrument as they are the primary beneficiary. However, we understand that different business arrangements exist.
If you have a different agreement with the seller where they cover the instrument costs, this arrangement is acceptable to us. Simply ensure all parties agree on the payment terms before we proceed with the draft.
Trust & Security
How can I trust Express Trade Finance? What protections do I have?
We understand concerns about trust in the trade finance industry. We’ve built our reputation on transparency and accountability.
Legal protections: We sign a comprehensive agreement outlining our responsibilities and liabilities before any transaction. If, for any unforeseeable reason, we fail to perform, we are liable for 100% refund of your payment.
Verification:Â Feel free to conduct due diligence on our company and the banks we work with. You can verify our credentials and banking relationships independently.
Personal engagement:Â We welcome you or your representative to visit our Dubai office to meet our team, review our operations, and sign contracts in person. This direct engagement is important to us.
Can you provide references from previous clients?
Yes, we can provide copies of past instruments and transaction examples to demonstrate our track record and experience.
However, we maintain strict confidentiality with all our clients. We cannot share personal contact information of previous clients as we sign Non-Disclosure Agreements (NDAs) with each of them. This protects their privacy and business interests.
We will share as much information as possible within these confidentiality constraints to build your confidence.
What happens if there's fraud or non-performance by the buyer?
The protection against fraud depends on your role in the transaction. If you are the seller, the Letter of Credit provides your primary protection. The LC is a promise to pay upon presentation of conforming shipping documents—it’s independent of the buyer’s creditworthiness.
The issuing bank’s responsibility is to examine documents, not evaluate the underlying transaction. Express Trade Finance’s role ends once the instrument reaches the beneficiary bank. Document verification and dispute resolution are handled between the beneficiary and the issuing/paying bank according to UCP or similar standards.
We recommend working with professional freight forwarders and document handlers to ensure all shipping documents comply with the LC terms.
When does Express Trade Finance's responsibility end?
Our primary responsibility ends once the instrument reaches the beneficiary bank. At this point, the legal obligations transfer to the issuing bank and other parties involved in the transaction.
However, we don’t abandon our clients. We continue to assist with further steps, particularly in Letter of Credit transactions where the issuer must review shipping documents. We help navigate any document discrepancies or procedural questions that may arise during the utilization phase.
Instruments & Products
Can your instruments be monetized?
Monetization eligibility depends on the beneficiary and their bank’s policies. Many of our instruments can be used for monetization purposes.
However, Express Trade Finance’s role is limited to instrument issuance. Monetization terms must be discussed directly with your bank or monetizer. They will evaluate the instrument’s eligibility based on their risk assessment and monetization policies.
We recommend disclosing your monetization intent during the drafting phase so we can ensure the instrument is structured appropriately for your objectives.
Why don't you require collateral or cash margin from clients?
We don’t require collateral because we operate differently from traditional banks. We have established facilities with issuing banks that allow us to issue instruments on behalf of our clients.
Our business model is to accommodate clients’ transactions and charge a service fee for utilizing our banking facilities. This is the core of our business. Only those with direct banking relationships or facilities can access these instruments independently.
For clients who cannot access instruments directly due to credit standing or lack of banking relationships, we provide a solution. The trade-off is that fees must be paid before issuance because we’re committing our facilities and resources to your transaction.
Do you accept alternative payment guarantees like BPU or MT799?
No. We follow a standardized procedure for all transactions to maintain compliance and risk management standards. Issuance fees must be paid in cleared funds after the draft is approved and before issuance.
This procedure is consistent across the industry. Any provider in the market requires the same payment terms. The benefit of working with Express Trade Finance is our access to a network of rated and reputable banks without the collateral requirements of traditional banking channels.
Parties & Roles
Can the seller cancel after the buyer pays? What are the seller's obligations?
This question applies specifically when the instrument is a Letter of Credit or SBLC. It’s important to understand the nature of the LC.
The LC does not bind the seller to perform. It is a conditional promise to pay—the bank pays if the seller presents complying shipping documents. If the seller chooses not to perform for any reason, this is outside the scope of Express Trade Finance’s responsibility.
The LC protects the buyer’s payment, but enforcement of the underlying sales contract is a matter between buyer and seller. We recommend having clear commercial terms and agreements in place before requesting the instrument.
Can the buyer default or fail to accept the shipment?
The Letter of Credit is designed to protect the seller against payment risk. Once the seller presents conforming documents, the issuing bank must pay regardless of the buyer’s subsequent actions.
However, the buyer’s obligation to accept and pay for the goods stems from the underlying sales contract, not the LC itself. The LC simply provides payment certainty for the seller.
We recommend clear communication between buyer and seller about payment terms, shipping dates, and document requirements before initiating the LC process.
Banks & Providers
Why should I choose alternative banks instead of prime banks?
Prime banks offer brand reputation, but this comes with significant trade-offs that may not suit your transaction.
Limitations of prime banks:
• Strict minimum transaction amounts (often USD 1M minimum)
• Inflexible documentation requirements and wording
• High fees and charges
• Limited customization for non-standard terms
Benefits of our alternative providers:
• Flexibility with verbiage and transaction structure
• Accommodation of lower transaction amounts
• Competitive fee structures
• Faster processing for non-standard requirements
• Same guarantee quality and bank rating
The bottom line:Â All our issuing banks provide the same quality guarantee. The difference is primarily cost and flexibility. You pay a premium for the “prime bank” brand without additional functional benefits.
Can you share the issuing bank and relay bank details in advance?
Yes, we can inform you which relaying or corresponding banks will be used for your transaction.
The draft document focuses on verifying the terms, conditions, and verbiage that all parties agree upon. Once you and your beneficiary approve the draft terms, we will provide specific banking details for finalization before issuance.
Please note that specific bank details may be subject to change based on processing requirements and banking relationships, but we’ll keep you informed throughout the process.
The Letter of Credit is designed to protect the seller against payment risk. Once the seller presents conforming documents, the issuing bank must pay regardless of the buyer’s subsequent actions.
However, the buyer’s obligation to accept and pay for the goods stems from the underlying sales contract, not the LC itself. The LC simply provides payment certainty for the seller.
We recommend clear communication between buyer and seller about payment terms, shipping dates, and document requirements before initiating the LC process.
Additional Information
A: While our standard procedure requires payment before issuance, we encourage you to discuss your specific circumstances with our team. We may be able to accommodate alternative arrangements on a case-by-case basis, subject to compliance review.
A: After receiving your approved draft and payment, the issuing bank typically completes issuance within 6-8 working days. The drafting phase depends on how quickly all parties provide feedback and approvals—typically 3-5 working days.
A: This varies by transaction. At minimum, we’ll need transaction details (amount, parties involved, purpose), commercial invoices, and any specific terms you require. Our team will provide a detailed checklist during your initial consultation.
A: Yes, we assist with amendments and cancellations post-issuance. These typically involve coordination with the issuing bank and may incur additional fees depending on the nature of the amendment.