Proof of Fund (POF) Messages
Proof of funds is a document or bank statement that showcases the financial capability of a person/company to undertake the transaction. With this, the other party or the parties will easily be able to get ensured of financial capability required for the transaction is procurable and legitimate. POF is mostly used when large sums of money is involved in transactions like biddings and investments.
Proof of Fund (POF) Messages
Proof of funds is a document or bank statement that showcases the financial capability of a person/company to undertake the transaction. With this, the other party or the parties will easily be able to get ensured of financial capability required for the transaction is procurable and legitimate. POF is mostly used when large sums of money is involved in transactions like biddings and investments.
Ready, Willing and Able (RWA) Messages
Also known as a bank comfort letter, RWA is a document issued by a bank or a financial institution on the clients’ behalf showcasing the capability and willingness of him or her to enter into the financial
Ready, Willing and Able (RWA) Messages
Also known as a bank comfort letter, RWA is a document issued by a bank or a financial institution on the clients’ behalf showcasing the capability and willingness of him or her to enter into the financial
Bank Confirmation Letter (BCL)
Bank confirmation letter (BCL) is a letter given by a bank or financial institution as a confirmation for a loan and also for a line of credit extended to a borrower. This letter acts as an official surety on behalf of a borrower that a person, organization, or company is eligible for borrowing a certain amount of funds for a specific purpose. The bank confirmation letter provides assurance to a third party that the borrower has sufficient financial resources for completing a specific transaction like purchasing goods.
Bank Confirmation Letter (BCL)
Bank confirmation letter (BCL) is a letter given by a bank or financial institution as a confirmation for a loan and also for a line of credit extended to a borrower. This letter acts as an official surety on behalf of a borrower that a person, organization, or company is eligible for borrowing a certain amount of funds for a specific purpose. The bank confirmation letter provides assurance to a third party that the borrower has sufficient financial resources for completing a specific transaction like purchasing goods.
Pre-Advice Messages
A pre-advice message is a message sent between two banks that are involved in a transaction to ensure the safety of the wire transfers when large sums of money are involved. It is issued by one bank to another bank notifying the issuance of documentary credit and advising receiving bank to sends their acknowledgement. The main objective of the message is to reconfirm all the details provided by the recipient is correct before the wire transfer and get assured that the beneficiary has a way to withdraw money from the bank. The advising bank will also notify the beneficiary without opening advice of credit thus enabling the seller to reconfirm to process the buyer’s order.
Pre-Advice Messages
A pre-advice message is a message sent between two banks that are involved in a transaction to ensure the safety of the wire transfers when large sums of money are involved. It is issued by one bank to another bank notifying the issuance of documentary credit and advising receiving bank to sends their acknowledgement. The main objective of the message is to reconfirm all the details provided by the recipient is correct before the wire transfer and get assured that the beneficiary has a way to withdraw money from the bank. The advising bank will also notify the beneficiary without opening advice of credit thus enabling the seller to reconfirm to process the buyer’s order.
Benefits of Securing These Facilities from Express Trade Finance
For the Buyer
- You do not have to keep collaterals for the facilities.
- You do have to keep deposits with your suppliers or tie up your cash until the goods are delivered.
- You can have benefits of inspection of goods, quality control and delivery time.
For the Seller
- Assurance of payment as long as the terms of letter of credit are complied with.
- Collection time is minimised as the letter of credit accelerates payment of receivables.