SNB UAE

Corporate Banking: Trade Services

Import Services
Import Services

SNB Import Services offers a wide range of products to facilitate and finance your import requirements. Our qualified staff will ensure that you get the best and prompt service.

 

Letters of Credit

One of the most common methods of financing the exchange of goods and services is through Letters of Credit. As an instrument, it is a written undertaking by SNB (the issuing bank) given to the seller (beneficiary) at the request and on the instructions of the buyer (applicant) to pay at sight or on a determinable future date a stated sum of money within a prescribed time limit and against stipulated documents, provided that the terms and conditions of the letter of credit are complied with.

 

Import Documentary Collections

SNB handles financial and/or commercial documents according to the instructions received in order to obtain payment and/or acceptance or to deliver documents against payment and/or against acceptance or to deliver documents on other terms and conditions. Banker’s Acceptance bankers' acceptance is a short-term credit instrument, most commonly used in international trade. It can be created under letters of credit.

 

Bills Discounted

The discounting of usance drafts and bankers' acceptances (the bank's own acceptances or acceptances of other banks) covering the shipment and sale of merchandise is offered. This product allows the seller or exporter of goods to receive immediate payment for a shipment while the buyer or importer need not make the payment until maturity of the draft.

Export Services
Export Services

SNB has a range of products that an exporter can use to facilitate export. SNB Trade Specialists are committed to deliver great value to our customers.

SNB offers a wide range of products and services to facilitate every exporter's needs. SNB Trade Specialists are committed to deliver great value to our customers with the following services:

 

Export Letter of Credit Confirmation

A confirmation of an irrevocable letter of credit upon the authorization or request of the issuing bank constitutes an undertaking by SNB (the Confirming Bank). This authorization is issued provided that stipulated documents are presented and terms and conditions are complied. Such confirmation services is required in order to manage commercial and transfer risks between a wide range of countries and credit worthy banks.

 

Export Documentary Collections

This service is the management of financial and/or commercial documents in accordance with the instructions received in order to obtain payment and/or acceptance or deliver documents against payment and/or against acceptance or deliver documents on other terms and conditions.

 

Export Letters of Credit (Advising / Negotiating)

SNB's role as an advising bank is to check the authenticity of the letter of credit and recommend it to the beneficiary. It also scrutinizes and negotiates export documents ensuring that amendments and relevant correspondences are promptly advised to the beneficiary.

Guarantee Services
Guarantee Services

Guarantees constitute a bank promise to pay in case of default by its customers. SNB issues a full range of guarantees to meet your requirements.

Businesses are often required to demonstrate their capability to meet various obligations with a bank guarantee. A bank guarantee is a promise by a financial institution to pay on behalf of the customer if they do not meet their contractual obligations.

Standby Letters of Credit (SBLC)
Standby letters of credit are often used in trade transactions as a secondary payment mechanism. SBLC is issued by banks on behalf of their clients to assure the beneficiary’s customer's ability to deliver under the terms of the contract. The beneficiary can cash a standby letter of credit if the customer fails to fulfill a contractual obligation. The SBLC can also be canceled as soon as the terms of the contract have been met by the customer.

Letters of Guarantee (LG)
A letter of guarantee is issued by a bank on behalf of a customer promising to pay the beneficiary should the customer default on his payment for whatever reason. A LG gives the beneficiary confidence that the payment due will be made while enabling the customer to take advantage of business opportunities that they will not be able to otherwise.

Bid Bond
During a bid based selection process, a Bid Bond assures the project owner that the bidder will accept the contract if selected and will carry out their obligations. In the event of the bidder refusing to accept the contract, the bank issuing the bid bond will pay the agreed amount to the project owner.

Performance Guarantee
A performance guarantee safeguards the beneficiary from monetary loss if the party to whom a contract is awarded fails to deliver on the contractual obligations. The bank issuing the performance guarantee will pay the beneficiary the agreed sum if the project is not completed.

Advance Payment Bond
Project owners sometimes make advance payments to contractors before commencement of a project to make certain preparations and an advance payment bond is a guarantee that allows the project owner to recover an advance payment extended to the contractor in the event of a default in meeting contractual obligations.

Payment Guarantees
A payment guarantee protects the beneficiary when payments due are not made for goods delivered or services provided. They are also used to mitigate risk when businesses deal with foreign markets.

Retention Bonds
A retention bond safeguards the interests of the customer against deficiencies after a project is completed and prior to final acceptance. It guarantees that the contractor will rectify the defects.

Special Text Guarantees
Special text guarantees are tailor-made guarantees structured in accordance with customers' specific requirements.

Advising Guarantees
Based on a foreign bank's request, SNB can advise a beneficiary that a guarantee is available. SNB's responsibility is limited to verifying the authenticity of the instrument and advising the beneficiary without delay.

Counter-Guarantees
SNB can issue bonds subject to the receipt of an acceptable counter-guarantee issued by another bank (domestic or foreign). The acceptability of the counter-guarantee is subject to the bank's internal policy and procedure.

Account Services
Account Services

Every corporate entity has its own unique banking and financial needs. The SNB Corporate Banking Account comes with an exhaustive range of features and benefits that take care of all these requirements. A SNB Corporate Current Account offers both AED Accounts & Foreign Currency options:

 

Account Services:

1. Account Statement
Account Statements listing movements, to and from your account, will be sent to you as frequently as you want. We also provide statements on request.

2. Check Books
Check Books reflect your business image in the market and build confidence and they are available with qualifying SNB Current Account.

3. Standing Instructions
Standing Instructions can be used to transfer funds from your various SNB accounts to manage your funds the way you want to.