Trade Finance

We provide full range of trade related services to our customers to facilitate both local and international trade transactions. We offer all trade related facilities like- Letters of Credit, Documentary Collections (DAA, DAP), Bank Guarantees, Standby Letters Of Credit, Forward Contracts, Export collections (CAD) etc.

We also provide various import and export financing to cater diverse needs of our customers. We offer import financing through Trust Receipt (T/R) and other import loans to our customers engaged in import of goods and services. Similarly, for our customers engaged in export of goods and services, we offer export financing through Pre-Shipment loans, Post-Shipment loan, Documents Purchase, Exports Bills discounting etc.

Letters of Credit (L/C)

Letters of Credit is one the most widely used modes of payment in International trade transactions. We provide Letters of Credit (L/C) facility to all types of businesses for import and export of various range of goods and services. We have built wide range of correspondent banking network with international banks for transmitting L/C to any part of the world. We give you assurance from world class banks when dealing with suppliers. You can be confident that payment will not be made until the documents are received and verified. Based on the goods and services being imported or exported, L/C can be broadly categorized into:

  1. Import L/C
  2. Export L/C

Documentary Collections

We also provide Documentary Collection services to our customers for import of goods and services. Documentary Collection is a trade transaction where the exporter entrusts collection of payment to its bank (remitting bank), which forwards documents to the importer’s bank (collecting bank), along with Payment Instructions. Based on the time period allowed for payment by the exporter, documentary collection can be categorized into:

  1. Document against Payment (DAP) or (D/P)
  2. Document against Collection (DAA) or (D/A)

Bank Guarantee

Bank guarantee is an irrevocable written undertaking issued by a bank on behalf of its customers to third parties (beneficiaries). Bank Guarantee is also issued at the request of correspondent banks, against their counter guarantee. Guarantee issued or counter signed at the request of correspondent banks, is generally termed as international guarantee and guarantee issued at the request of our customer is termed as local guarantee.

In order to facilitate business requirements of our customers, we issue different types of bank guarantees as mentioned below:

  1. Bid Bond guarantee
  2. Performance Bond guarantee
  3. Advance Payment guarantee
  4. Supplier’s Credit guarantee
  5. Customs guarantee
  6. Counter guarantee etc.

Forward Contracts

Forward Contracts are binding contracts done by customers with the bank in foreign exchange that locks in the exchange rate for the purchase or sale of certain currency on a future date. In order to mitigate the risk of exchange rate fluctuation, we provide forward contract facility to our customers for payment obligations like L/C, Documentary collections, T/R loan booked in foreign currency etc.

Export through Cash against Document (CAD)

Similar to the case where importers use Documentary Collections as an alternative of L/C, exports can be made in absence of L/C through the means of CAD. We provide CAD facility to our customers exporting goods and services to various foreign countries.

For more details regarding our Trade Finance related services, you can contact any of our nearest branches or you can directly contact at:

Centralized Trade Operations

Janata Bank Nepal Ltd.
Shankhamul Marg, New Baneshwor,
Kathmandu, Nepal
Tel. No: +977-1-4786100, 4785673, 4785675
Fax No.: +977-1-4786300
SWIFT: JBNLNPKA | URL: www.janatabank.com.np

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